hannity is next. i am bill o'reilly. we hope to see you again next time. remember the spin stops right here because we're definitely looking out for you. [captioning made possible by fox news] sean: tonight, rumors of a health care deal on capitol hill. senator john mccain joins me to respond. >> the cambridge police acted stupidly. >> cops are turning on president obama. former l.a.p.d. detective mark fuhrman is here. >> what good is reading the bill if it's 1,000 pages? sean: congressman john conyers isn't doing his homework. and a soldier demands an apology from one democratic senator. anti-obama protesters take to the streets in israel.

all that plus the great "great american panel." we are three days from the house's august recess abandon eight days from the senate's summer break so the clock is ticking and democrats have yet to produce the health care bill the president has demanded so they are doing what all responsible adults would do, making excuses. shifting the blame. nancy pelosi is blaming insurance companies for her failure to get a health care bill through the house. apparently house majority whip clikeurn didn't get the memorandum om because he's blaming it all on republicans. according to clyburn, republicans have perfected "just say no." that's interesting because democrats enjoy such a powerful majority in congress right now that they don't need the republicans to pass this bill. the truth is, it's democrats themselves who are holding up this mess of a bill. they are the seven blue dog democrats on the energy and

commerce committee and they've been wielding their power within the democratic party. why the democrats, why shifting the blame to republicans? joining me to answer this question is arizona senator john mccain. you would think that the republicans won here, considering they're getting all the blame for this. >> you would think so. but i also would be a little careful about the blue dogs. traditionally and historically they bark but they don't bite. in the case of other bills such as climate change, the speaker peels off enough of them in order to win and gives the other ones a free pass so i'm not confident that the blue dogs will hold fast. in fact i think it's very likely they cave. sean: i think it's likely they cave and there's a couple senators we keep reading about. three republicans and three democrats. they've gotten together in a room and they pretty much have, quote, worked out their differences and they're talking about a co-op bill instead of a public option bill.

what do you know about it? is this incrementalism in your mind? >> i think it is. i just make a couple points. we with were not in the takeoff on the formulation of health care legislation in the health committee of by -- which i am in and though we sbebt a -- spent a lot of days working together, none of our real significant amendments such as medical malpractice reform, were adopted. i don't know exactly what is going on with them but i do know if they do away with the so-called government option that's not going to make a lot of the liberal democrats very happy. we republicans want reform. we're for it but we also don't want a government takeover of the health care system, which is the foot in the door which would be led to, and second we don't want any employer mandates. >> -- sean: why would members of the senate finance committee be negotiating sort of rogue like

this and not consult with leaders like yourself? does that bother you? >> well, i think they are consulting with us. i understand that people are always in favor of negotiations to try to reach a solution. i just don't believe right now that a democrat proposal as we understand it and where the negotiations are are going to succeed because the democrats have a fundamental belief that you have to change the entire health care system in america. we are of the fundamental belief that the quality of health care in america is the best in the world and you've got to preserve it. in fact the problem is the affordability and availability, not the quality. sean: look at what democrats are talking about in terms of paying for this. the various tacks that they have at least thrown out there as a trial balloon. the latest ones are, for example, plastic surgery, which by the way that's probably going to impact both you and me down the road -- i'm only kide -- kidding.

at least me for sure -- >> without a doubt -- sean: they're talking about a soda tax, about taxing employer, employee benefits and a million ar surcharge. but they're talking about significant tax increases when the economy is in a slowdown. what is your reaction? >> this would be the worst time in recent history to raise anybody's taxes. but the point is that when they're talking about reform and reducing costs, then why do we have to increase taxes? why do we have to increase revenues? there's a fundamental contradiction there. we believe we can reduce the cost of health care by allowing people to go ashall -- across state lines and buy the health insurance they need, by allowing small businesses to pool, by allowing outcome-based treatment rather than paying for prer by procedure. statistics are that about $100

billion a year are spent on defensive medicine by considers because of their fear of lawsuits. by the way, i'm sure most of you know that a neurosurgeon's malpractice insurance could be as high as $200,000 a year. who pays for that? approximate so we think there are fundamental reforms that can be made to reduce the escalating costs of health care. that's the fundamental foffs kal -- philosophical difference we have. sean: that's why i would like to have more options on the table than these private meetings may bring about. i am telling everybody who will listen this will be a disaster. it's not just sean hannity. it's the congressional budget office. they're pointing out it's going to drive you will -- up health care costs by trill yons, leave monies out of the system, force millions into the government system. i think we have every reason to believe it results in rationing and the government making

decisions as they try to make money including probably impacting the elderly the most of the is there any aspect of my analysis that's wrong or am i on target? >> one, you're on target. two, one of the seminal moments i think occurred a couple weeks ago abandon -- and last week when the congressional budget office which by the way is selected,ed -- the head of, by the democrats, came out with a devastating assessment of the cost of the health care plan. as you know it did not save money. it increased health care costs by $207 billion a year and that was a devastating blow to what the president and the democrats were trying to foist off on the american people as true reform. actually it was not true reform. all it was going to do is increase costs to americans. sean: senator, during the campaign you weren't one to take sean hannity's advice, not that i was offering it --

you're laughing -- but i felt the issue of jeremiah wright, bill ayers, the radical associations, i thought they were very important because they revealed a part of the president's character that i believed needed deeper analysis. the president weighed in on this cambridge police department issue is professor gates and he said the police "acted stupidly." thomas sowell had a great column today basically reaffirming if you sat in that church for 20 years you probably would have that rush to judgment. in retrospect do you think maybe it was more important than people thought and you should have brought it up more? >> i don't -- i think people were aware of that situation. it was very well publicized and very well covered. look, we were in the midst of an economic tsunami as you know. the stock market dropped 700 points in one day. i think most people's attention

were on the economy and also the situation as regards to iraq. and i believe we -- believed we would succeed there. i think those were the major issues. but i understand your point. sean: the president now has had six months to impact the economy. he's said unemployment wouldn't go above 8%. now it's 9.5% and headed to double digits. he's accumulated more debt than every other president combined before him. now his poll numbers are beginning to impact, you know, the decisions that he's making. how bad are these decisions for the economy? if you were to assess it honestly six months in, how bad is this for the american people? >> i think the stimulus package was really a seminal moment. they picked off two, three republicans, one is now a democrat, and it was a huge, massive, a huge, massive expenditure and the money couldn't be spent right away. right now there's only like 10%

of the money and the predictions were that there would be unemployment a maximum of 8%. this has raised the awareness and concern about what we're doing, this committing generational theft and robbing our children and grandchildren of an economic future. that's where i think a seminal moment was. sean: i think you coined the term generational theft. were you dead on the good to see you. >> thanks for having me on the sean: coming up, one democratic congressman caught on tape admitting he has no plan to read the health care plan before voting on it. and "the washington post" says democrats are shading the truth about the real cost of health care reform.

sean: michigan congressman john conyers gave americans a lot of reason to be confident in the health care bill. >> what good is reading the bill if it's 1,000 pages and you don't have two days and two lawyers to find out what it means? sean: yes. too complex for your lawmakers to bother with but good enough to take care of all your life and death decisions.

sean: tonight in "your america," there were high hopes today among democrats that a deal could be reached on health care but it now appears the house will in fact adjourn friday without voting on a bill. which is good. joining me to look at the price tag of this looming reform are alexis glick and dana perino. first, it's the democrats, their own ranks fighting among themselves, which is a good thing. >> they control every bit of washington and have no one to blame but themselves.

sean: why am i convinced that pelosi, reid, and the president have not given up -- >> no, they haven't given up -- sean: and they're basically going to compromise and trying to rewrite the bill. the idea of a co-op, not a government option. >> no matter what i don't think they're going to get a bill done by friday. i don't say they're not going to try. so we have to be careful they're wily. but they have not convinced the american people what is going to be in this plan and how they're going to pay for it and they're not buying it. i really think they have to go back to the drawing board. sean: what bothers me, alexis, is they're going to come up with different wording, use incrementalism, not going to give up their goal which is ultimately government-run health care, no? >> the co-op kfings has been going on now for at least six weeks. i interviewed senator conrad

about it and he was the first to raise it. i think it has some real traction and i believe it will be the bill that gets supported not only by blue dogs but also by fiscally conservative republicans. it's a nonprofit. the projections are it will cover 12 million people. even though we argue that 45 or 47 million in this country are uninsured, even the experts say about 12 of that 45 to 47 million could be currently insured under existing programs. sean: that 47 million has been debunked. >> it has. some say it's as high as 08 -- sean: this option, you say conservative republicans are going to support it. as far as i know there are only a few, charles grassley and a couple others that are even talking to the democrats. >> the key thing here is if you look at insurance, health insurance in general, ok, it is

basically rup by a handful of companies and the key issue here is that insurance is run by a state by state basis. the issue is can you cross over interstate lines right now and make sure that if you are living in new jersey you can purchase insurance in rhode island? one of the things they're discussing is portability because it creates competition, which lowers prices. right now what we look -- lack is competition. if you do co-ops that is a way to address competition and lowering prices without a government option. >> it just took alexis about a minute to explain that and i do not even understand what she's talking about. that's a compliment to her, not me but like most americans -- sean: uh-oh >> thep cannot explain it. they're not going to be able to and this debate has gotten so tax -- toxic. they had a terrible week last

week. no matter how many co-ops you come up with or exchanges, the c.b.o. has said this will raise the deficit and -- co-ops do not raise the deficit, number one. sean: we don't know that. hasn't been scored by the c.b.o. >> there's still a judgment and that's what wax sman waiting on, the latest c.b.o. report. sean: that option does have a significant premium, 35%, if i recall correctly, that they're going to put on so-called premium health cares, and a tax on soda and on boatock --? there is -- tote ox -- there is no doubt any health care reform is going to cost us. i'm thrilled that they're walking away with nothing and all have to go back to their constituents and look in their eyes. sean: they're going to get hammered for voting on

government care and bills they don't read. >> here's what we're missing. cobra. why aren't we addressing those concerns -- sean: i've got to move on. but they have tried to force this down the throats of the american people without any cost analysis or specificity or details. this is nearly 20% of our economy. >> they could get to a solution if they would take a step back and invite the republicans to the table. we don't have to have a zero sum game where nobody wins. sean: i got to ask you, president obama lashes out against the cambridge police department, said they acted stupidly. he didn't have any facts to back this up. how big a mistake was this? now he has the lowest poll numbers. now below 50% in two recent polls. >> i don't know how much that is directly attributible to the comments by, about gates. the night of the press conference when he used

"stupidly" i did have a sharp intake of breath because i knew what was going to happen. when you're commander in chief and president of the united states it sounds lymph -- differ. but i think they handled it fairly well. it's hard sometimes for people to apologize. sean: he said he and i would have a beer someday. he actually said that. did you decide whether that is a budweiser as he had at the all-star game or -- sean: no, i -- in the spirit of spreading the wealth i offered to pay. half a heineken limit >> hein he canin light? oh, god, i loved you until i heard that! sean: sorry. that bluft -- just blew you away? what do you drink? >> tanqueray and tonic and lime? >> sean: oh, excuse me. all right. good to see you both.

coming up, democrat claire mccaskill got a -- an earful from angry constituents and a much needed civics lesson. and the latest on the gates-clowly-obama controversy. %

sean: tonight on hannity's

america, people across the country are speaking out against the democrats' health care plan. at a recent town hall meeting members of senator claire mccaskill's staff heard first hand from their -- her constituents. many didn't sound happy about the way the party is take the -- taking the country. >> and the rest of these people in people in congress and the senate, are they going to be willing to be on the same plan they're asking us to be on? sean: moments later a soldier in attendance criticized the senator for her support of government-run health care. >> sean: now, congratulations to that young man for standing up and having his voice heard.

remember when president obama famously said about the vice president, nobody messes with joe? well, some members of the white house press corps are not buying it and they questioned robert gibbs about the v.p.'s latest string of gaffes. >> i think the president and his team are enormously helped by the vice president. whoever it is. whether it is the implementation of the stimulus -- or ranging from things like the implementation of the stimulus to being involved in the politics and political reconciliation that has to happen in order to make iraq a

safer place and to see us fulfill our commitment to remove our troops under the timetable that the president has proposed. i think he's an enormous asset to the administration. sean: all right. robert, i think the only thing better than having you as press secretary would be to have joe biden take your job. and this evening's universal nightmare segment comes to you courtesy of the united kingdom's national health service. that's the organization that's supposed to provide everybody across the pond with universal health care. but the herald reports that scots are not pleased with the health care.

sean:, well, yeah, i think that's what usually happens when the government is in charge. and tonight's media mash is brought to you by "newsweek" magazine. according to "the american spectator" "newsweek" correspondent darren brisco who was embedded with the obama campaign has officially joined the white house. he will be working for the office of national drug control policy. his reporting contributed to the publication of "a long time coming," "newsweek's" book on the campaign. i'm sure the book and automatic the reporting were completely objective. hannity's america continues in 90 seconds with a stimulus update that will make your blood boil.

sean: white house chief of staff rahm emanuel recently said the obama administration rescued the economy. news out of oregon today may have him reassessing his assessment. the a.p. reports that in oregon the 3,000 jobs democrats claim were created by the stimulus lasted an -- an average of only 35 hours so after less than a

week those people were unemployed again.

sean: president obama's criticism of the cambridge police in the wake of the henry louis gates arrest isn't sitting well with many police officers. >> i supported him. i voted for him. i will not again. i agree that i think it's admirable that he would speak on behalf of his friend but he

should have recused himself. sean: joining me to discuss this and more is former lapd different. mark fuhrman. thank you for being here. appreciate it. >> nice to be here. sean: your general thoughts on the president intervening in this? >> i think i should maybe state first, with me here there's kind of an elephant in the room. i was called a racist. that was 14, 15 years ago. but regardless of the context of what i did or who was supposed to hear it, i apologized to a race, a nation and every police officer. with that being said you look at this situation and sergeant crowley has absolutely nothing to apologize for. professor gates has everything to apologize for. and the president should publicly apologize to sergeant crowley for his comment. sean: let me go to your case for one reason only.

when you were on the stand and were asked about whether or not you had used that word and you said no and it came out you had been working on a play, do you feel you got a fair shot? that people would allow you to give context and texture? in other words it wasn't you saying it, it was a play? were you treated fairly? >> nobody ever even asked. even when they prosecuted me for perjury i was never talked to by an investigator. nobody in the state of california asked me one gement -- question. sean: had you forgotten about that tape? >> i had completely forgotten. who would care about something that was a fictional screen play. that peeng said, that doesn't take away words that are hurtful and i made my apologies. but in this situation we need to see sergeant crowley, a man in a black and white in uniform and he hears a call come out. he does what eff cop is supposed to do unless they

don't want a cop to arrive at their house when 911 is called. he needs to do certain things before he can leave because he can't leave until he is satisfied a crime has not occurred or one is not in progress. professor gates hindered that possibility for him to diskoff that even when sergeant crowley said "i'm going to leave the harvard police are here," still professor gates pursued this and he challenged him. he assumed he was a racist solely because he was white. there was no interaction between sergeant croug -- crowley in that respect. he was simply doing what he is paid 20 do. sean: i thought that comment we just played was very interesting to me. there have been other minority officers that know this man and have defended him. he's actually been teaching some of the younger cops on the job about issues involving race and sense activity. which i think is a great thing. we know he was instrumental in trying to revive reggie lewis,

the former celtics star. but the president weighs in, says he accounted stupidly, even admitting he doesn't have the facts. when you're the president of the united states that has a huge impact. should he apologize? >> absolutely. and he should do it as publicly as he called the cambridge police sergeant crowy stupid for doing. i find it a little embarrassing for our nation and for me personally that we hear the president come on press kfs after press conference, i'm in two wars, i got to do health care, the economy's in the tank. so he takes time out to be a camp counselor for something he has no power, no influence. he cannot influence the cambridge police department one bit in this issue. sean: we've gotten a few tapes now. this professor gates was, and this doesn't surprise me, a bit of a radical. this is on c-span's "book notes." listen to what gates had to say

especially after he talks about malcolm x talking about being the devil. >> my mother hated white people. >> all her life? >> probably. i didn't know until 1959. we were watching mike wallace's documentary called "the hate that hate produces" about the nation of islam and i couldn't believe, i mean malcolm is talking about the white man is the devil and standing up in white people's faces and telling them off. it was great. her face was radiant. this beatific smile started to transform her face and she said quite quietly, amen abandon then all right now. she said she never trusted white people, she didn't like white people and didn't want to live with white people 78 sean: forget his mother. he was saying malcolm x was talking about telling off white

people and he laughs. he says this is great. >> that is the most ignorant thing i've ever heard anybody say, that there is racial profiling here. he couldn't have a racial predisposition unless the radio gives him pictures of people before he gets there. and about police procedure, when sergeant crowley went up there, this is where most cops die. they go up to a house where they have an unknown call and they don't know what it is but the suspect is inside. the suspect inside has covering -- cover and concealment. when you make contact as sergeant crowley did, he needs to not only identify that that person is who he says he is but there's nobody else in the house making him say that. sean: what about people that say, and i got a lot of calls to my radio show about this, people say professor gets -- gates was wrong, the president was wrong but the officer was wrong because he didn't need to

arrest him. >> i disagree. sean: why? >> when the harvard police arrived and he turned away and said i'm leaving now, now professor gates thinks he won this and he started pursuing sergeant crowley, yelling things, stating things and creating a disturbance that was -- see -- sean: every comma greed with you that was there. but some say you have a right to call a cop anything you want. >> you don't have a right. if you create a disturbance, an environment that would incite people to jump in, then this is how riots start. sean: a degree that once he was that uncooperative and provocative and disturbing, he was in the wrong and the police officer in the right. i would like to see the president apologize publicly and i would like to see professor gates do if. i'm not holding my breath. >> i can't believe sergeant crowley would even go to the white house unless he is guaranteed both those men

apologize to him and do it publicly. there is absolutely no reason for him to go. he's 100% in the right and if the president and professor gates don't get off this they're probably going to be the ones being sued. sean: time now to check in with greta who is about to tease the living daylights out of us with some big nugget she's going to hide from us. am i right or wrong? >> you know what, sean? a member of congress, a democrat, says he needs to hire two lawyers in order to read the new health care bill. this is health care reform. we're going to need law reform because we're all going to have to have lawyers to read the health care bills coming down the pike. this is getting pretty nutty. sean: i'm going to give ub the initials of the congressman. j.c. >> ok. initials. what does b. 3 mean? >> b 3? >> want a hint?

sean: yeah. >> ok. it's sort of like g-8 and g-20. sean: got it. but i'm not going to tell. i have no clue what you're talking about. i'm lying through my teeth. >> oh, you don't? it's huge. so huge. sean: it's a new hannity football. i'm going to get one specially made for you. you like it? >> try not to break the lights like you did last time with it. sean: you know, you had to rat me out! greta, in 19 minutes we'll see you. the panel streat ahead.

sean: tonight on our "great american panel," she is the washington editor for "fortune magazine," fox news contributor nina easton is here. he is the national chairman of the republican national assembly. danny vargas. and she is a fox news anchor and analyst and former prosecutor. kimberly guilfoyle is with us. all these politicians are going home. carnahan in missouri and claire mccaskill -- they're hearing from their constituents. latest victim, mccaskill. roll the tape. >> the people in congress and the senate, are they going to

be willing to be on the same plan they're asking us to be on? sean: there is an open revolt. the polls are showing obama is below 50. the country does not want this but they're still trying to ram this through fast. >> americans, let your voices be heard. that's what the principles of this country are founded on. go to these people, tell them you are not satisfied -- sean: tell them sean hannity sent you. >> tell them sean hannity sent you. sean: but also this revolt is coming from the democrats themselves. it's more inphyting than we have seen since obama has taken office. is that why he wants to push this through so fast? >> he knows the people are getting sick of this. they didn't buy into this. missouri is one of those swing states. as days go by, the polls are

getting worse and worse. whether it's health care, the economy, or whatever, it's just tanking. >> interesting numbers, sean. his approval rating is exactly the same as it was for george w. bush in july of the same year, the first year of the presidency. sean: i don't know which poll you cite because zogby and rasmussen now have him at the -- below 50 for the first time -- >> this i looked at -- sean: might have been the gallup poll. >> but the point is his -- he's personal limb quite popular but the job approval rating is no different than george bush. what -- going back to health care, what you are running up against is 85% of americans like their heat. care, they're satisfied with their health care. all this debate has stirred up fears that they're going to have to lose their health care,

move into a government program, be taxed. sean: it seems the more details that become available the less american people are inclined to support it. rasmussen says opposition to this plan, down by nine. the presidential approval rating is minus 11 for obama. >> but the devil be in the details on all this stuff. when you poll americans and say do you want health care reform, they do. but what happens is you go out and say we're going to contain costs and expand coverage. can you really do both? it's not easy and this is the third rail of politics. sean: it is. george bush tried. he wanted to go after social security. he wasn't successful the >> why having to rush this through? the waters are pretty murky and americans don't want to tip their toe in because they're afraid it's going to be much worse than they're dealing with now. and what's the rush?

sean: the rush is obama -- look, rahm emanuel, the chicago way that he leads, he's not politically naive. i think he understandses that if they don't get this done and get this done quickly, especially if unemployment is headed for double digits, their political capital is gone and they're not going to be able to pass this. >> and the american public knows you don't need a government takeover to be able to deal with some of the real issues. we do have to have some health care reform in the country but we can do it without undoing the best health care system in the world. >> there's something next year calendar -- called an election that's going to make things -- sean: oh, really? >> yeah. the closer you get to that election the -- election the more contentious things are going to get on capitol hill. the blue dogs are going to go home in august, next week and we're going to be hearing from constituents. >> word of caution.

there are 52 blue dog democrats out there. they need 14 or 15 to get past this. sean: well, they're talking about the public option and this new plan they're coming up with. but when you look at the numbers, patterson, the governor of new york, corzine, boxer is in trouble. harry reid is in trouble, pelosi is in trouble. the democrats don't seem to be grasping that the country is not buying into this especially because the numbers on the unemployment side -- the stimulus isn't working. >> plain old-fashioned we worry about tax and spend liberals. it's coming back to haunt us. you listen to barack obama's speech at the convention last august when he laid out a very conventional democratic tax and spend kind of agenda. he didn't look like a new democrat. that's what's coming back to haunt them. sean: we have to take a break. much, much more when we come back back with the "great

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sean: and we continue now with our great american panel. all right, so we spent a lot of time. you have very strong opinions about the professor gates. first of all, they are going to

have a beer at the white house. president obama could not issue an apology saying he acted stupidly. >> i know i am going to get lots of hate mail from this audience i think any of us would have reacted the same way as professor gates is a police officer -- if we had told him that we lived in the house. sean: he did not tell him. >> he showed that he live there, his driver's license, and then they arrested him. he walked out onto the porch, and they arrested him. sean: he was disturbing the peace. >> look. everybody overreacted in this situation, but i do think in a case that was not so racially charged, a lot of people would have reacted that way, a police officer or resting you in your own home. sean: this police officer -- a police officer or resting your -- a police officer arresting

you in your own home. >> they did not pull the man out of his own home. sean: he was not operative, and he was belligerent, and he was calling him a racist. but these offices show up to protect our lives on a daily basis -- >> these officers showed up to protect our lives on a daily basis. "sorry for the trouble. here is my id." that is all it needed to be. >> i think it is the job of the police officer to lower the temperature of the situation. sean: he tried. >> you hear gates screening. >> the professor, what kind of lesson is he teaching, being belligerent? -- you.

-- you hear gates screaming. sean: when an officer shows up and says, "we have a report of a break-in, " you start calling him a racist -- a break and," -- a break-in," you start calling him a racist? we have got ward churchill, bill ayers, as a professor. when you see this tape about professor gates talking about malcolm x singing that white man or the devil, and it was wonderful -- -- saying that white men were the double -- where the devil -- were the d evil.

this is a teachable moment. >> he was basically called a bad name by the president of the united states. sean: what is acting stupidly here is a president admitting he does not have the facts, and then he tries to lecture everyone else about lowering the volume and teachable moments. >> the teachable moment should have been for president obama. he should have learned from this lesson not to jump into local matters, and that as president of united states, that is something that the officials in boston should take care of. we will let it play out. >> in this case, president obama pretty much did admit that he overstepped his boundaries. it may be that a teachable moments sounds a little bit pedantic, but i think there is nothing wrong. the president reversing course. sean: he still stands by the idea that the police officer was

wrong, and he still does not have the facts in this case. every officer on the scene corroborated the arresting officer's point of view, and they also said he did the right thing-because he was disturbing the peace. >> this was not an officer that had a history of problems, he engaging in racial behavior, where be aiding in appropriately -- a history of problems, engaging in racial behavior, or being properly -- behaving inappropriately. >> i am waiting for that beer. sean: he offered. why do they not invite me? barack obama has call me out by name, all of these times. president obama, i would bring the beer, your choice.