here because we are definitely looking out for you. sean: tonight media companies are getting big bucks to push a message. we will have the details on the brewing scandal. >> there are groups today that have bragged about organizing and manufacturing certain things. sean: the head of that group now breaks his silence. >> a tax cut -- i will cut taxes. a tax cut for 95% of all working families. sean: nobody believes the president.

warren buffett has new comments. "hannity" starts right now. some accusations have been made despite having no evidence to support a claim. shocking details have uncovered and revealed that people profiting from this debate are high-profile members of their own party. that is our headline tonight. conflict of interest. according to an investigation by bloomberg news, close ties to david axelrod has received $12 million to support ads -- to support the president's plan through advertisements. he departed to join the obama administration in 2008. the company still owes him $2 million. and other advertising firm that also received hundreds of

millions of dollars on the obama campaign is cashing in on the health care debate as well. that company known as gmmb employes and tumble of -- a number of obama strategist. i am joined by the author of the "culture of corruption". number one times best seller three weeks in a row. congratulations. >> thank you. sean: this story chronicles a lot of what you have in the book. if these firms are closely connected to this debate, there is a clear conflict of interest in my mind. what are your thoughts? >> definitely. this case is a perfect illustration of so many of the things that i hit on in the culture of corruption. bob barack obama and his team

have brought to the potomac pay or play politics. some of his firm's have specialized in certain things. here is the pot calling the kettle black. but the entire democrat majority leadership is going out there and smearing the grass roots the party and the counter is there is a movement when people within the white house starting with the senior adviser david axelrod less than profiting mightily off of this. both companies rate in $344 million combined last year doing advertising for barack obama. it is revealed by bloomberg and the associated press that these firms have right in between 12 and $24 million.

sean: beyond the obvious counter -- conflict of interest, do not we need an investigation into whether david axelrod and his associates negotiated any part of this, because the american people need to know. >> we need full disclosure and a kind of transparency that barack obama promised when he was ushered into office. we need to know the disclosures every time david axelrod went on tv to push the health care plan by obama blogging money to advertise for it. every time the white house denies something, they admit that someone was right. that is the case with the white house emails. fox was the only one to question

them on that. this requires a white house reality check. we want people to investigate the fishing information and deals. sean: we have more evidence of the chicago style politics. henry waxman sent out a letter to insurance companies demanding documents about compensation, business practices. they want to intimidate, harass, and use this as a form of the ionization of the health-care industry that they have focused -- demonization of the health- care industry that they have focused on. does that concern new? >> yes. it is a case of double dealing. at the same time you have all waxman and nancy pelosi out there making these health

insurers look like a demon. you have the obama administration with their hands out collecting money from that. table axelrod is one of many officials who has taken money from what they consider the evil drug industry and health insurance industry. a couple of weeks ago we talked about the health care czar. she was on the board of directors of many of these insurance firms and health-care companies. many have met in secret with the white house. eric holder, the current attorney general who made a lot of money representing the maker of oxycontin. who are the ones being paid? i would like robert gibbs to be indignant about questioning the motives of the people within his own administration who are taking this money. sean: very well said. i saw something on your website

that i agree with. we saw the trial balloon floated over the weekend that maybe the government option is on the table or we can change some things. they started talking about these co-ops. you do not want your readers to get caught up in this because it is the same thing. can you explain? >> gas. i think it could be a public auction by another name. the devil is always in the details. we have learned that over the last six months of the obama administration. many smart people will look at the details are concerned that is another single payer plan. sean: they supply the means of servicing and supply. i do not care what name they want to give it, if the government controls that, and they still control the prices and what services you get and will get or will not get, that

all somali means rationing -- that ultimately means rationing. it's not that still government control? they want to get people to believe that the co-op is different from a government auction. it is the same thing. >> it is all in the details. there may be some legitimate proposals of the health- insurance co-op that would have some market-based reform. we cannot trust the administration. we cannot trust some of the propaganda that they are using to sell it to us. sean: good to see you. congratulations again and your book. >> thank you. sean: aarp members continue their revolt against that organization in a town hall. the white house accused the group of manufacturing town

hall events all across the country. the founder of that organization is here to respond to those accusations for the first time.

sean: before turning in their cars, some gay the aarp officials a piece of their mind on tuesday. >> [unintelligible]

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when democrats began meeting at the town hall events, they say it was organized by the republican party.

here is a white house propagandas robert gibbs. >> there are groups today that are concerned about patient rights and set brag about organizing in manufacturing the meetings. they have bragged about manufacturing to some degree that anger. i think you get somebody and it very involved in the leader of that group. >> rick scott joins me now. the disease. -- good to see it. sean: did you have any bossing?

-- bussing? no union folks? >> no. no. if i could get more people to show up, i would. sean: we have watched these town hall meetings. we have seen grandmothers in paris with their children in wheelchairs. we have seen -- parents with their children in wheelchairs. we have seen veterans. what was your role in all of this? why do you think they are singling you out? >> i do not know why they are singling us out. we have done everything we can to educate people about these bills and what president obama is trying to do. we may have done more than some other people. what is happening is that took

their has done it, on the internet has done it, twitter. it is great what is happening. people say how can you cut $500 billion out of medicare and is it not affect me? sean: they tried to get this through in two weeks, but now that we have this recess in people are engaged in that are trying to understand what is being proposed, that has changed the debate. now the white house is saying, we want choice and competition. this is health insurance reform not health care reform. do you think the repackaging of this will be successful? >> absolutely not. the american people know. it is ok if you are undecided. now the american public is the sighting. they know this is a government

takeover of health care. this is a government insurance plan. they know it is bad. they got informed about how canada works and how the uk works. they know that this is not good for them. they are fed up with taxes and how much insurance is going to change. people are happy with their insurance. sean: will get into more detail during our panel segment. they have a filibuster proof u.s. senate and they have the white house. why did they keep saying that the republicans are obstructing this? they have had the opportunity to go it alone from the beginning have not they? >> yes. my first interviews were in march. everybody said that you are crazy. where are you doing this? he has all of the boats. -- votes.

they cannot get the democrats to go along. there are some that are saying, i will not be reelected if i have this big tax increase. sean: harry reid and his staff are saying that this new option that we keep hearing about which is the reconciliation process, he uses any means legislatively necessary that they will use. you do not think they will use that? no. there is no way they can do with. nancy pelosi said a month ago that she had all of the votes. there are 100 votes she does not have. they do not have them. we all have to stay very active and keep going to the town hall meetings and let them know what we believe. sean: i have a number of

articles. i have spent a lot of time investigating the systems. we will have a special tomorrow night to talk about this. the canadian medical association is saying that canada care is imploding. they will have to cut thousands of surgery's because they cannot afford them. one woman had to give birth on the pavement because they would not send an ambulance for her. is that what would happen here? >> absolutely. every government plan has a long waiting lists. they all end up the same way. gordon brown, the prime minister of the u.k. had to apologize for forger people dying at a hospital this -- in the last three years. there is no way this is going to

happen. sean: long lines, inferior care. we are far more satisfied with our health care system then in other countries. the democrats keep saying the republicans are being an obstruction. i believe we should have tax credits for the 15 million not the 47 million that cannot afford it. i believe in medical savings account. when the tort reform, for example as a part of any solution. i think there are free-market methods. are you promoting them? >> when we started, we put out the ability to choose your doctor and the plan you want, not some plan that the government says you have to have. competition, have provider's tell you what things cost and allow the insurance to set things across state lines. you own your own policy. if you own your own policy, pre-

existing conditions would never be an issue if you owned it since you were 25. they get special prizes if they eat right and do not smoke. these would drive down costs. sean: this is supposed to be an open transparent administration. we do not have those arguments being made. they do not want conservatives participating in the process. >> know. they do not want to have the debate. we can't talk about the things that do not cost money and would drive down costs. we want lower costs not government health care. sean: thank you.

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sean: big news, america. the president found federal spending he does not like. defense spending. he made the announcement before the veterans of foreign wars on monday. >> the impulse to protect jobs back home building things we do not need has a cost. we cannot afford it. this waste would be unacceptable at any time. at a time when we are fighting two wars and facing a deficit, it is unexcusable. sean: hold on. as in the stimulus about creating jobs by building things we do not need? isn't it the promise that spending a stimulus? somebody said that very thing. >> to get the argument, this is

not a stimulus. this is a spending bill. what do you think a stimulus is? that is the whole. -- whole poitn. -- point. seriously. sean: that is only true when it comes to. less domestic projects, not national defense. most americans -- when it comes to domestic projects, not national defense. >> i will cut taxes. cut taxes for 95% of all working families. a recovery plan provides a tax cut. that is right. a tax cut for 95% of working families. the only tax policies i have implemented for middle-class families is a tax cut for 95%.

sean: does anybody actually believe him? a new poll suggests that the answer is no. the latest rasmussen's survey asked americans if they expect taxes to go up or down or stay the same. under president obama, 6% of people said they expect a tax cut. 82% said they expect the taxes to increase or stay the same. it is sad when the vast majority of the people who voted for you do not believe you can deliver on those promises. sean: health care reform is not the only issue the democrats have lost control of. you can add cap and tax to the list as well. one democrat the slamming his own party for pushing the climate change legislation. timothy wirth later served as president clinton's clive -- climate change negotiator. he says the bill makes no sense.

he said, "the republicans, in fact, are right. it is a cap and tax bill. that is what it is because they're raising revenue to do all sorts of things." you heard it here first. a democrat thinks republicans are right. the white house has build the town halls as a chance for president obama to hear from the american people. a closer look at last week's event in portsmouth, new hampshire, reveals the only reason barack obama is interested is because he wants to hear from himself. are around 10,000 words were spoken in new hampshire, 8000 of which came from the president's mouth. he spoke almost 90% of the time. when he says he wants to go it alone, maybe that is what he needs. we continue with a bomb shell from "the wall street journal." gecko vo: geico's the third-largest

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sean: with america buried in debt and no end to the spending spree, warren buffett is sounding an alarm that politicians need to listen. he wrote -- sean: members of congress, are you listening? joining me with reaction to this story is our friend from the fox business network. good to see you. warren buffett, obama supporter. what does this mean? >> this is a warning to president obama. watch out. you cannot continue to spend, borrow, and print money the way you are. if you do, you will turn us into

a banana republic. this is important because it is warren buffett. this is the man that has a great reputation. he is -- he was an ardent supporter of the president during the campaign. now, he says, wait a minute. you have got to think about retreating from all of the spending. sean: how does this impact? two bits of news came out today that scared me. max baucus says social security could face default within two years. we have hundreds of dealers dumping the cash for clunkers program. they are not been paid. how does it impact it? >> i do not know how it directly impact social security or cash for clunkers. this is a call to start retreating from the spending. my position would be, he cannot retreat. this administration cannot retreat from what is already in place. you cannot back off from the

stimulus program. it is implemented. you cannot back off from the record budget, the $410 billion supplemental spending program. you have to have something to show to the farmers with cap and trade. you cannot back away from the health care reform of $1 trillion over seven years. the unwritten thing in the warren buffett piece was, you have to be careful with health reform. sean: what do you think of economists who think we're about to hit a double dip inflation here? what you think about roubini? he predicted all of this. they call him dr. doom. what do you think of their predictions that this is not sustainable? warren buffett is joining. does this impact obama in any way? >> it should. it takes credibility away from the economic program that he has in place. their two predictions we're dealing with. warren buffett is predicting

really serious inflation down the road if we do not rain in the printing. two, a double-dip recession. we are out of the first, that part of the recession. maybe a bit of growth by the end of the year. the prediction is, watch out. we go downhill again. sean: look at the headlines. home prices declined. retail sales are down. revenue to the government is down. the numbers cannot last week. the deficit quadrupled in one year under barack obama. foreclosures are up. the cost of government day -- >> you have a triple whammy that is not being faced up to buy the obama economic program. unemployment is still rising. employers are firing. consumers are not buying. you're about to see the worst in a decade back-to-school spending season.

foreclosures are going through the roof. 360,000 foreclosure notices went out in july alone. these are challenges to the economic program, which the president will find difficult to address. sean: what you make of the poll this week? 57% do not see the stimulus as working. have americans lost confidence? >> 72% want the money back. it is not working. do not spend it. we want our tax money back. the way people are beginning to look at the obama presidency and his economic policy, the wheels are beginning to come off. there is a lack of credibility. when walter cronkite turned negative on vietnam, lyndon johnson said, i this lost america. when the warren buffett turns negative on obama's economic program and the spending ,

president obama loses legitimacy. sean: correct me if i'm wrong. this is unsustainable. all the things you mentioned about the stimulus, the omnibus, the earmarks, everything combined -- >> what is not sustainable is the deficit. it might be close to $2 trillion this year. sean: they are adjusting it down. >> $11.70 trillion has accumulated over the years. the interest on that debt is already half a trillion dollars per year. that is not sustainable. sean: i took half of my money out of the market. i want to get out totally. i say that to people and they say, you will be better off in the long term. you are fairly young. >> what are you going to do? where are you going to go?

sean: you know about the economy. we can predict inflation. interest rates will go up. i do not see any way out of the employment numbers. i see no incentive for capitalism. >> people think these are ugly echoes of the 1930's. the stock market gyrated and lost, but the economy went straight down for most of that decade. some people see parallel. sean: do you? >> i do in terms of market action. a double-dip recession looks right out there. let's not fool around with the word "depression." sean: thank you. appreciate it. here's one more... ziploc evolve. made with 25% less plastic. and made with wind energy.

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sean: he has served the commonwealth of virginia for over 20 years as governor and in both bodies of congress. george allen is back with us. he served as an op-ed columnist and white house correspondent. juan williams is here. he is don imus' longtime producer. bernard mcguirk is here. >> this is a disaster. where is the obligatory pretty check? did we ever get the death penalty? -- death panels? sean: that was your role tonight. >> i could have worn a dress. sean: we are glad you are here. that is only for saturday. the democrats want to go it alone on health care. they have 257 seats in the house. they have the filibuster-proof senate.

they do not need the republicans. >> they might want to go it alone, and they are doing that as far as the american people are concerned. most americans are concerned not about the government running their health care system, not wanting to have their plan that will increase taxes on small businesses and increase the national debt, cut medicare cost and all of the other things, reducing the quality to health care, most americans care about the economy and jobs. they would like to see their government doing something to make this country better, more competitive for more investment and jobs rather than counterproductive harmon burdens being imposed, whether it is on the cap and tax timor this government-run health care system. i think what you are seeing is a big disconnect with the people in washington as opposed to those in the real world. they are seeing it at town hall meetings. people are worried about deficits, cuts, taxes, and they recognize america has the best

health-care system in the world, the best equipment, best medicine. why would we want people to wait in line like they have in britain? sean: there is a tone deafness there. >> i agree. you can say, we have the best health-care system in the world. businesses are going out of business because of the cost of paying for health care, paying for employees to have health insurance. there are many people who do not have insurance. so many families go bankrupt when grandma gets sick. the family has to pay up because we love our older folks. the gop right now is missing in action. they sit in the cheap seats and they holler and say that obama is the problem. sean: republicans are saying, we will have tax credit for people who do not have insurance. they are talking about portability from state to state.

they have mentioned medical savings accounts. nobody wants to hear them because they are not invited into the meetings with obama. >> grassley right now is caught in between. on the one hand, republicans say he is not representing us. he wants to represent republicans. yet, there is not one, a solid idea. you gave me five ideas. why don't republicans say, this is our idea, and let people criticize it? >> if they can be heard. those are the approach of republicans want. republicans are pushing ideas that will allow people to have more affordable access to quality health care. they want individuals to be able to make the decisions, not remote bureaucracy. >> jon kyl and charles grassley need to stand up and say, this is what we believe for with health care.

>> there are a lot of different proposals out there. it is like a kid with straws shooting paper. the teacher is over there. >> that will be the difference. democrats want remote bureaucracy making decisions. republicans are wanting to push ideas, equalize the tax treatment. a small business owners should get the same tax breaks as a large corporation. allow individuals to own health insurance policies, not the government. sean: let me advance this a little bit. dealers have abandoned cash for clunkers because it is not working. max baucus said that social security could be insolvent in two years. medicare is broken. i have a stanford study with the hoover institute that 70% of countries that have socialized medicine do not like it. it needs a complete rebuilding. if america cannot run the

current programs they have -- people have faith they can take over 20% of the economy. >> i do not think i have faith. the president misspoke when he talked about the post office being the beacon of efficiency. i would like to make the observation that it is enjoyable if you are a spectator. you have the lord, the giver of life defending himself against euthanizing granma. it is a wonderful thing to behold. i do not think he is a fighter. i do not think his heart is in it. he delegated this whole thing. sean: i disagree. he handed over to pelosi. i think it is the holy grail for them. >> if they lose this one, nothing else is coming out of this administration for four years. >> that would be fine. >> there you go. sean: we will come back. . .

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sean: and we continue now with our great, great american panel. all right, harry reid is threatening the nuclear option. if they do not listen to the american people who are speaking out at these town halls, and they bypass the normal channels, they will have great difficulties if they want to try that, and would that be a slap in the face to the american people? >> yes, it sure would. the fact that they put that in the budget was wrong. any piece of legislation should not be treated the way they were trying to do. it would be the nuclear option, but it is not for nominationç o

the supremmç court or situation like that, and i think that would cause such bad blood within the senate, and, thing, such bad faith with the american people, -- and, i think, such bad faith with the american people, and they do not have 60 votes in the senate, and that means that some are saying, "i am listening to my constituents, and they do not want this." >> republicans are the ones that are going to use reconciliation, and now, oh, no. remember? >> as far as judges are concerned, i tell you, i was for that. >> look. you are an elected man. you are a man of high standards. i do not want to accuse you of hypocrisy. you cannot be one minute for it and another minute against it when the other guy has the power.

>> the supreme court or the ambassador to the united nations -- >> it is good for the gander, it is good for the dues. -- goose. sean: this is robertç byrd's view on the constitution. cash for clunkers. we do not want that. >> how can you say that? how can that pass your lips? some dealers what the process better so they get paid more quickly. they do not want to participate anymore, and they want to drop out of it. that would be suicidal. do you know how much money the dealers have made it off of cash for clunkers? you know they are making more cars? sean: social security is going broke. medicare is going broke. we have tripled the deficit. i cannot name a program but the

u.s. military that is run officially. why do people believe that the government is capable of running health care? i do not understand why you have faith, hope, and trust in them. >> have you ever heard of medicare? ever heard of social security? we still send out checks to people who are in need. let's, now it is not broken ok, ok. i amç just saying. çlet's be realistic -- now it s not broken. ok, ok. our government is trying. if you are on social security, guess what? if you are on an airplane, guess what? sean: they were supposed to put that money in a black box, were they not? >> yes. -- in a lockbox, were they not? >> yes. sean: why do liberals supported?

>> because that is their ideological bent. he is the most -- politician to come down the pike. reverend wright, his grandmother, the gays. he wants to get some bills so they can take credit for it. sean: so many americans now have been conditioned, senator -- get some builill. college education and now health care. what are we giving up? liberty? freedom? ç>> we areç giving up the cont of personal responsibility, and that is what i think americans really in their hearts want, and it is fostering freedom and a level playing field, the land of opportunity for all people. there is a variety of issues,

and what these ideas, whether it is the rationing of energy and >> this is going to be 1994 all over again. >> are you happy with the status quo? >> at least you are in the gate. >> at least you are in the gate.