hope to see you next time. remember the spin stops right here because we are definitely looking out for you. sean: tonight -- >> i looked at this health care plan. i see nothing that is about health or care. sean: the american people rise up against reform. >> you want us to believe a government that can't even run a cash for clunkers program is going to run a seventh of our economy? >> you will not see your income tax go up, your payroll tax go up, not one dime. sean: but all the president's men seem to disagree. get ready for a middle class tax hike. and who says sarah palin is a lot like maugesmauges? and does this old video reveal the president's true intents

for health care reform? all that and more. as democrats arrive back home there are angry constituents mate -- waiting to greet them. they are voicing their opposition to government-run health care. that is our issue tonight. last week it was senator claire mccaskill's staff who got an earful at a town haul meeting. >> sean: well, yesterday the city of brotherly love didn't exactly live up to its namesake at a town hall meeting featuring senator arlen spector and health secretary kathleen sebelius. >> i look at this health care

plan, i see nothing that is about health or about fair. what i see is a bureaucratic nightmare, senator. medicaid is broke. medicare is broke. social security is broke and you want us to believe that a government that can't even run a cash for clunkers program is going to run 1/7 of our u.s. economy? no, sir! no! sean: wow, that sounded more like a philadelphia eagles game or a flyers game than a town hall. joining me to discuss this and more, the author of the book "stroir -- catastrophe," how obama, congress, and the special interests are transforming a slump into a crash, freedom into socialism and a disaster into a catastrophe and how to fight back. dick morris is here. that's a good way to fight back. >> it sure is. we got to sign that lady up.

they wanted august. the blue dogs did. now we have got to let them have it because they are planning to pass this bill with 50 votes. they're planning not to ask any republican votes, just do it with hard core democrats. sean: got to bring people up to speed on what you're saying here. the president said this on a conference call, chuck schumer confirmed this that they're going to use the reconciliation process which would -- >> let me explain reconciliation. back in the days of the attempts to balance the budget during the first bush administration in the graham-rudman period they decided it was too complicated to have filibusters over budget bills so they said when you pass the federal budget, you can't filibuster at 51 -- filibuster it, 51 votes is

enough to bass -- pass the then they tried to put all sorts of bills through and senator byrd from west virginia said wait, this is only applicable for budget bills. the problem is biden will be the one that determines what's a budget bill and what's not. the chair is going to rule and he can be sustained with 51 votes. sean: look, it's tim beneficiaryo. this congressman carnahan in missouri. kathleen sebelius, this is the second time she's been shouted down. arlen specter. now i'm hearing democrats are afraid to show up at these town halls. >> this has to be a time of unbelievable pressure. on my web site dickmorris.com you, i outline four steps you need to fight back. one is arm yourself with information. number two, we're going to be putting up an advertisement,

american league of voters, that asks flatly how can you cover 50 million new people without any extra doctors? you can't. this is the end of medicare as we know it. go to my web site and learn how to promote that ad. then call your friends, writer your senators and congressmen. there are 15 moderate democratic senators we can get over this bill and we've got to if we're going to have a health care system. >> sean: i call them the laptop democrats because they seem to roll over every time harry reid or nancy pelosi brings them to the white house. i have a list of "talking points." i should not have gotten hold of this. two democratic members of the house democratic leadership accompanied with their simplistic platitudes and bumper stickers "talking points" the one of the strategies is saying go

demonize insurance companies. tell people, no more co-pays. no more out-of expenses, no more yearly caps on what you pay. even though the bill does not say these things nor will any of this happen, they're engaged in a propaganda campaign. can these simplistic "talking points" work? >> well, they can if they don't know the facts. the facts are yeah, they'll do all that. you just won't get to see a doctor. you won't have any care. you don't have a co-peay or deductible. you won't have a tr or nurse or medicine! a quarter of all medicare money is spent in the last year of the patient's life. they can't say we want those people to die but that's what they mean. they are going to slice medicare. my father is 99 years old. he spent a week in the hospital, had two procedures for a immediating ulcer. -- bleeding ulcer the survived.

visited him five minutes ago. he's in great shape. he'd be dead if obama's planned passed because they could never approve that procedure for a 99-year-old and i couldn't pay for it because i wouldn't be allowed to. >> and in britain, the national health service refusing to pay for cortisone shots for people that could chronic back pain. this on top of denying women with advanced breast cancer the drugs they need. >> and in the meetings they had with the insurance companies at the white house targeting back pain spending was a big part of it. what this means really is that the federal health board is going to make the decisions on who gets care because forget public option, forget private option, forget all of the tax issues. there's one fundamental question. how do you cover 50 million new people without any new doctors? >> sean: i dispute the 50 million

number for a lot of reasons you and i have discussed in the past. first of all, many are short term. a lot of illegal immigrants. >> but they're going to add -- cover illegal immigrants. sean: that would add to the figure. the question for the republican party, they've got to offer their alternatives. i would suggest tax incentives for people that need help, medical savings accounts the how do they sell this >> the key thing for republicans to project is that this is the end of medicare because if the senior citizens are united in opposition, this is dead. it's the senior citizens. and they're the ones that are going to suffer. rationing isn't going to affect you. it isn't going to affect me. it's going to kill our parents. literally sean: scary. coming up, she way be -- may be out of office but the liberal

obsession with demonizing sarah palin is in full force. and he promised no new taxes for the middle class but the administration now backpedaling on the pro -- potential tax hike in the future of middle class americans.

sean: sarah palin derangement

syndrome continues to inflict liberals across the country. salon.com quotes. don't worry, no one will ever compare you to a journalist.

don't worry, no one will ever compare you to a journalist. sean: president obama's top economic aides sent shock waves through washington over the weekend. on separate sunday television interviews each indicated they would be open to raising taxes on the middle class. >> it's never a good idea to absolutely rule things out no matter what. >> i think what the country needs to do is understand we're going to have to do what it takes. sean: those comments a far cry from what we heard from senator obama on the campaign trail. remember that? >> if you make less than $250,000 a year you will not see your income tax go up, your capital gains tax, your payroll tax, not one dime. sean: now it appears the advisors are revising those stments. -- statements and all this on a

day it's reported the year will have the single biggest tax revenue drop since the depression. karl rove, we could have literally strung together obama saying 1,000 times on the campaign trial "we're not going to raise taxes, we're not going to raise taxes." was that a trial ball snoon or are they already going to consider raising taxes in >> he's already raised taxes on people making less than $250,000 a year. he signed into law a cigarette tax hike and the energy bill, the cap and trade tax hit anybody who owns a light switch. so already they've tossed that out the window. taxing people who made less than $250,000 a year. i think sunday we heard honestly from summers and geithner that they wanted to

have these ton the table. we heard mr. gibbs come out and dismiss them but i think frankly they've got a better idea what policies they -- they might be pushing behind the scenes. in the health care bill they've got four taxes that hit people below $250,000 a year in the house markup and we haven't heard one peep from the administration about opposing these. one is a tax on people with unacceptable coverage. it starts with families who make as little as $18,000 a year. a new employer mandate is going to be paid by working people. they allow the distribution from h.s.a.'s or flexible sabrings accounts for over the counter drugs.

estimated to cost $8 billion in additional taxes and a comparative research tax, which again will be levied, paid for by people who make less than $250,000. sean: well, it's nice to see lawrence summers awake for a few minutes and nice to get electricured by a tax cheat like geithner, but in all seriousness, you look at this article, the obama recession, the worst tax revenue decline since the great depression. don't we increase revenues when we cut taxes? it seems they have not learned the lessons of history here. >> i think part of the reason we're having less revenue is the economy slowed up. what do you do to get the economy growing again? what they're doing has not helped. i don't blame all this revenue loss on them.

part of it is the economy is in recession but what are they doing to get us out of it in i love it. they came out and said there have been some green shoots. we heard that earlier this year. that didn't turn out to be true. now they say the economy is plateauing and that's because 10% of the stimulus has been spent. why did we appropriate $787 billion if we could get away with spending $70 billion? the economy is going to recover in spite of what they're spending not because of it. sean: the most recent data shows that the top 1% of americans now pay 40, 1% now pays 40% of the tax burden. in 1987 that was only 24.8%. that's nearly double. >> year, the top 1%.

1.4 million people pay more than the 134 million people who make up the 95% of the bottom 79 sean: you stole my thunder. literally now, 1.4 million taxpayers pay more than the bottom 95%, 134 million people. is that not complete redistribution? is that not by definition socialism? is that not to each according to his need, from each according to his ability? >> well, it depends on what the top rate is. if that top 1% is paying say a third of their income in taxes this might be the result of a dynamic growing economy. but what obama wants to do is raise the tom effective rate on those individuals to 39% on their income tax and if you toss in social security and medicare, to over 50% top rates. that's getting con fiss cat

orie. -- confiscate orie. there's another way of looking at those numbers. the top 50% of taxpayers in 2007 paid roughly $1 trillion 683 billion in taxes. the top 50% paid 34 times as much as the bottom 50%. the top 25% paid six times as much in taxes as the bottom 75%. sean: we've got some economists predicting the unemployment debacle may last for years. this guy rubinny who predicted this he said the recession is going to be to the end of the year and the recovery is going to be slight because of all the debt and deficits. we're getting electricured on capitalism by china.

how bad is this? how do we get out of this economic downturn especially with the democrats seeming pretty convinced they want to go one step further with health care? >> the american people need to make it clear to their leaders in washington that you do not spend your way to prosperity. if that were the way to do it every country in the world would consist of millionaires. it's easy to spend. it's hard to restrain government and let the natural spirit and the economy get going again the i think the message ought to be you know what? we agree with president obama when he says we're out of money, so stop spending it. geithner and summers on sunday said the way to deal with the deficit is by raising taxes. no. restrain spending. don't be passing all those omnibus spending bills, etc., etc. sean: nice thought. make cutting taxes can

stimulate economic growth but i'm out of touch in the age of socialism and redistribution. karl, thank you. >> thank you. sean: are you out of a job? you may want to call president obama. looks like some jobs are up for sale in his administration. that story coming up.

sean: tonight on hannity's mesh, with the unemployment rate soaring the white house has decided to do its part. sort of. harper's magazine is reporting that if you want to be an ambassador in the obama administration it will cost you roughly $500,000 in political contributions. ambassadors are being installed now worldwide and some are so

controversial some countries, like germany, are even refusing to sign off on them for the job. and with the universal nightmare looming, new polling data is showing that most americans are actually happy with their health care coverage and want democrats to back off. take a look at this rasmussen poll which shows a sharp improvement in how americans view the health care system. and 80% of those polled rate their coverage add good or excellent. an 11% increase in only a year. i have an idea. instead of weastding a trillion dollars on health care reform nobody wants, why not just give everybody a tax cut in and tonight the waste 101 update features some of the tiniest cities.

ouzinkie, alaska, has 165 people. no scores -- stores, no gas stations, not even a stoplight but the federal government is now spending $15 million of your stimulus dollars straight to ouzinkie to rebuild the airport. that's about $90,000 a resident. and according to the nonprofit journalism group pro publica, the standing -- standing rock sioux airport in north dakota is receiving millions in stimulus money and about the same number of planes that pass through atlanta's hartsfield every 90 minutes. they go to the standing rock airport every year. tonight's great moment in

liberal foreign policy brought to you by president obama. the president has repeatedly voiced his hope that raul castro will bring democratic change to cuba and is eager to, quote, recast relations with that nation. in order to do so it turned off a news ticker in havana that smide cubans with news and information. it reportedly infuriated castro. and this weekend raul castro celebrated the fact that the new administration was less aggressive than the bush administration. sounds like the president's appeasement and weakness is working like a charm. hannity's america continues in 90 seconds.

sean: finally tonight in hasn'tity's america, the new york obama times are having a rough year and apparently the editor is getting booed. ouch. more hannity in 90 seconds. quality and reliability...

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sean: now, the president is running into lots of problems when it comes to passing health care reform but the main one may be that his numbers just don't add up. he promises his bill won't require raising taxes and will in fact decrease the nation's debt over time. we found different. ainsley earhart is here to explain. >> we've added up all the numbers. you're going to be shocked. reforming health care in the middle of a recession of course is a risky proposition but the white house budget director insists the obama administration's health care effort is deficit neutral for the first decade as well. but that doesn't make sense if you add up all the facts. he is a former director of the congressional budget office, the independent, nonpartisan agents -- agency that provides

budget information to congress. what does that agency say about the health care plan? they say none would control long-term spending and most of the plans would add a trillion dollars to the deficit over the next 10 years. the projected 10-year cost of the insurance coverage provisions would be more than $1 trillion but medicare direct spending would be retudse by $219 billion acovereding to the white house. then there is that income tax surcharge only high-income tax -- high income individuals. once up add in all the others, we are left with a net deficit increase of $239 billion just in the first 10 years. after that, the c.b.o. says relative to current law the proposal would probably generate substantial increases

in budget deficits. during the decade beyond the current 10-year window. the white house argues that the c.b.o. estimates don't take into account po tex future savings. the president pledged not to sign any bill that would increase the doifments but, sean, if you look -- deficit. but sean if you look at the deficit that seems impossible at this point because the numbers aren't adding up. sean: joining me to discuss all this, the former advisor to the mccain campaign doug holtz eken. one of the things that got the ball rolling was the failed stimulus package, the false promises about unemployment and the impact it would have on the economy. the next blow to the obama administration was the c.b.o. scored up the first health care

bill and it was -- it was a disaster. tell everybody what the process is. you were there. >> it's very simple. each time a bill is reported to a committee the c.b.o. takes a look and says what will this do to the federal budget? what happens to federal spending? what happens to taxes? what happens to the debt we leave for our children? and they have seen an acceleration of the mountain of debt we leave for our children the sean: why would this have taken the obama administration by surprise the way it did? did they not anticipate this or even examine the possibility that this would be a debt increaser, not what they were say something >> i find that really surprising. no one should be shocked about what the c.b.o. is saying. it is in the law that created them that they have to be clear with the congress about where the estimates come from. they've been laying the groundwork for the estimates

for months and what we've seen is a fundamental problem in the bills that are delivered, not the way the c.b.o. is scoring them. sean: the c. borvings -- c.b.o. is supposed to be nonpartisan. there was a report out that the chair actual hi met in the white house with the president, in the oval office. that's troubling to me because that sounds like he might be trying to exert political pressure. is that possible? could that happen if >> well, it certainly has that appearance. i think the white house did him a tremendous disservice to invite him to the white house. it's hard to say no to the president. he is the president of the united states. if he invites you you can't say no, sir. but the c.b.o. works for the congress, for both republicans and democrats in the congress and the white house should not have put him in that position. it does lend a bad appearance to lobbying the c.b.o. sean: ok. we're actually trying to get to the bottom line.

it's troubling to me that we have a list of "talking points" from the democrats, this is good for you, you won't have to pay a co-payment. this settle bumper sticker sloganeering and the platitudes going on. but as scored by the c.b.o. this increases the debt, the promises they're making are false and none of these things are going to come true. am i reading it right? is it the disaster that i read it to in >> yes. this is bad health policy. it's obviously bad budget policy to accelerate the amount of debt. and bad economic policy. these bills are full of job-killing provisions, mandates and new taxes. it is time to step back and put this on the right track and this -- if they want to demagogue insurance companies, remember, insurance companies are as good as the markets they're in. so let's make them compete. for your dollars, give you better services. >> one of the things that bothers me too is whenever they

estimate what the cost is going to be it always turns out to be six, sen, eight, nine, 10 times what they predict. one of the great examples of that would be medicare. it ened up being, correct me if i'm wrong, keven or eight times what they projected in 1990. now it's headed to bankruptcy. what happens if all their estimates are wrong? doesn't that guarantee rationing will follow and we're going to see long lines, long waits, inferior care follow as well? what are the possibilities they get it wrong? >> as a former director i promise you they will get it wrong. i have a lot of sympathy for how difficult it is to do these estimates but there are two kines of mistakes you can make. when i ron the c.b.o. we ran the prescription drug bill, providing to our seniors. we estimated it would cost 50% more than it did. the places you see them

underestimate is congress because there is no underestimate to reduce costs. that's the kind of mistake they're making here the sean: well, thanks for being here. the great, great, "great american panel" straight ahead.

sean: tonight on our "great american panel," he is a republican congressman from the great state of california even though they're bankrupt. john campbell is here. the former editorial page editor of the "washington times," tony blankley is here and nina easton is back. thank you all for being here. congressman welcome in from the broke state of california.

>> if you want to see what the federal government is going to look like in two years just look at california now. they're doing the same things we did -- sean: or look at michigan. >> and california just kept spending, spending, spending and thinking somehow it would all take care of it self. it didn't and it won't here either. sean: they're calling them the blue dogs. i'm calling them the lap dogs because they've given in on everything, stimulus, ear marks, now on cap and trade and now health care. we've got carnahan, spectr, kathleen sebelius, all having these town meetings. >> we are delighted to welcome secretary kathleen sebelius. joining her in today's discussion is senator arlen specter.

house and senate are both working on legislation to look at and -- [people shouting] -- you want us to believe that a government that can't even run a cash for clunkers program is going to run 1/7 of our u.s. economy in sean: i love it, tony. >> that's a tough crowd. later on in that she didn't know a key provision about gender definition. when you get out there in front of americans and you're trying to push something down their throat and you don't even know what's in it, that's one of the things driving the public mad is that the congressmen aren't reading the bills. sean: and arlen specter -- well, i have the democratic party "talking points" here.

say no co-peay, and these dopey congressmen are going out there and regurgitating this and getting ridiculed. >> what's happening is it's gone from people like that voter there and about cost and now people are actually concerned about choice and whether the government is going to be making choices for them. most of the spending in health care as we know is at end of life. so now you have these possible counseling sessions -- sean: end of life counseling. >> which is a very difficult, messy, emotional subject. are we going to suddenly look at -- >> sean: let me tell you how i would envision it. nina, you're 85 years ole, you've led a good life. you bonet -- don't want to be a burden. maybe you don't need those antibiotic. >> people are getting this, like are you going to deny my mother a hip replacement because she's 09?

it's being driven home to people in a way they can really, really get. sean: these are average, everyday people. >> these aren't paid people or union people. sean: they watch fox though and listen to rush the that's a very dangerous combination -- cox the but you -- in the u.k. according to the national health service now can't get a cortisone shot for an ailing back the >> yeah. people don't want that. i and the other 177 of us in congress, we can do certain things. we can only do so much. when the public engages like that, that really supports us. >> one of the reasons president obama's got this situation is he overlearned the lesson of clinton. clinton had a lot of details in 1993-1994 and a lot of us, i was one, pointed out all the

things that were wrong with it. now obama's decide we're not going to even have details. so everything that might be in a bill, we're entitled to say this is one possible thing he might do and we're building up a bigger and bigger opposition. a little bit like what happened to george bush when he came out for social security reform but didn't give details. sean: let me run this from barack obama and what he said in 2007. >> my commitment it -- is to make sure we've got universal health care for all americans by the end of the first term as president. i would hope we would set up a system that allows those that can go through their employer to access a federal system or state pool but i don't think we're going to be able to eliminate employer coverage

immediately. there is going to be a transition. i can envision a time 15 or 20 years out -- >> tony, he wants government health care. >> yeah. barney frank said he was caught in an ambush interview walking down the hamilton and tom daschle said in his book they want to get as close to single payor as they can. sean: but they're purposely being dishonest to the american people. >> if you talk to democratic leaders in private now you hear that they want a single payer system because they say what's the difference between that and medicare and everybody loves their medicare. sean: why can't they say it then? why can't they be honest with the american people? >> excellent question. there is definitely a current in the democratic party that does want a single payer system. sean: got to take a break. more with the panel straight ahead. .

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sean: and we continue now with our great american panel. i used to demand on the street interviews on my radio show, and we have done it on this program. you want to have the government give you a free car? little did i know that cash for clunkers would come into play, and you support this as a republican. what? >> we are spending trillions of dollars on stimulus that is not a stimulus -- why? it is not working, so one of the things i thought we should do from the beginning is some kind of purchase incentive. in fact, i think we should do one for homes. sean: do you think that is the role of the government?

and what ever happened to standing true -- and i love the car industry. >> when the recession is deepening, many people losing their jobs, as they are, i think we should do something to make it shorter and shallower. sean: it did not make it better for fdr or for japan. >> that is why we do not want to do the same things they did, and that is not what this is. >> when you start politicizing the economy, you build in the rational economic activity, so we are now destroying cars that are usable, the are of value, in order to satisfy a political ideology, and that is the danger. you keep doing that, and the bigger it becomes as a piece of our economy, the less efficiency, the poor we get. sean: -- the poorer we get. sean: they are going to give you

millions of dollars to green a building you are going to knock down? >> the very first thing was to green a building. it is a federal building. they have announced it is for sale, and they are turning it down. sean: after the teachable moment and the beer summit, party i.d., approval, health-care numbers, every number wheezy for the president is going down and going down fairly dramatically -- every number we see for the president is going down. why? >> ifill lost a lot of white voters. -- he lost a lot of white voters. i think what is interesting about this president is he has tried so hard not to step into racial issues.

he has been as pretty consistently by reporters, "what is it like being a black president? " he waded into it this time, and i think it did not help -- a black president?" he waiteded into it. >> his press secretary said later that he was expecting the question, not that he was expecting it or that he was set up. this was apparently the answer he wanted to give. i think it did not play well for him because they said it "a teachable moment." i think they were trying to close it down. that is why it was off the record, and i think if they wanted to have a teachable moment, it would have been on the record. sean: the only one who acted stupidly is the president. i think it hurt him.

all of these numbers, on eight out of the top 10 issues, the republicans are actually leading the democrats in terms of their ability to get the job done. why do you think that has changed? >> because the nancy pelosi and harry reid agenda is not only not in the center of the country, it is not in the center of the democratic party. sean: do you really think these blue dogs will bail? he pulls them into the oval office, and they are going to cave. >> they usually do. ultimately, every congressman is going to pay a lot of attention to whether or not he will be reelected again. >> the thing in politics is self-preservation, and they voted for stimulus. if they put this on top of it, a lot of them will be gone. sean: aea