>> sean: before we go we want to thank the folks here at the gwyneth center. tomorrow we will be in cincinnati. go to hannity.com for details. >> greta: get ready. which are one hour and 59 minutes away from tax day on the dqst coast. tea parties are revved up coast-to-coast. a short time ago governor sarah palin took the first one a boston tea party by storm. >> i don't want those in congress who stood strong against obama care until the end. they understand that you improve health care, we need less government and more competition. they know that to get the economy back on the right track we need to cut spending and not stall the spending spree that we have been on. now, we need congress to hear us when we say please, those in theç positions of power and authority to cast votes, starve the beast, don't perpetuate the problem.

don't fun the largesse being proposed. we need to cut taxes so our families can keep more of what we earn and produce. and our small businesses can reinvest according to our own priorities and hire more people and let the private sector grow and thrive and prosper! [ cheering ] >> that's how our economy comes roaring back to life. if washington really wanted to help create jobs, they can jumpstart some of our energy projects. we can pave the way for proven conventional sources of energy, resource development with nuclear and clean coal technology and on and offshore drilling. [ cheering ] >> because remember energy in america is security for america. so yeah, let's drill baby

drill. nnd stall baby stall! [ cheering ] >> you betcha! all of this make us more beholding to foreign countries, less secure it makes us less free. i'm not calling anyone unamerican. but the unintended consequences of these action the results are unamerican. [ cheering ] >> is that what barack obama meant when he promised the nation they would fundamentally transform america? he warned us with the playbook is -- is this what their change is all about? i want to tell them, nah, we'll keep clinging to our constitution and guns and religion and you can keep the [ cheering ] the voters are coming!

now we've all learned a lot of lessons in this last year. i don't want anybody to feel bad if they supported some of those on left in the last election.ç we had a complicit media that did not do its job completely. some tried, but some did not! >> greta: s are planned from coast-to-coast tomorrow on tax day on the record we'll have them covered. this time of year most americans look at individual and family budgets. are politicians in washington going to look at our u.s. budget or blow it off? paul ryan went on the record. congressman nice to see you, sir. >> good to see you greta. >> greta: tomorrow is tax dayç every american has his or her eyes on money and finances. how is the united states government doing in terms of a budget? you got one? >> they are not going to do a budget in year looks like. i can tell you since the obama

administration came into office now we have in law 670 billion dollars in new taxes of new taxes that are in law since the president took over. 300 billion of that, a little over, hit people making less than $250,000. 14 different tax increases that affect families making less than $250,000.ç taxes are way up, spending is through the roof. it is our understanding that the democrats are choosing this year not to do a budget. they have the house, they have the senate, obviously they have the white house, one of the basic functions of governing is to budget. >> greta: the thing that i guess is of some concern to most americans is most americans have a budget. and the reason that you have a budget is so you can figure out what makes sense to spend, where you can spend or how you somehow bring down any credit cards you owe. this idea of a budget does haveç a practical implication.

why no budget? i realize you are the minority party, but why not a budget? >> obviously, we propose budgets. i'm a republican head of the budget committee. we put an alternative budget when the budget came last year. i put out a vision. go to roadmap.org if you want to see that they though it is going to be a scary-looking budget. the budget the president 1.8 trillion new tax increases dubbing the debt in five years, tripling the debt in three years. ihdon't that i is the budget they think or want to pass before an election. unfortunately, that's the budget the president is asking them to pass that's the budget they passed last spring and that's the budget they will be bringing up. i don't know they have the votes in their own caucus to pass it. i think they would rather not budget versus pass the budget they want to pass. >> greta: damned if you do, damned if you don't if you are the majority party if they

don't pass the budget republicans are going to hit them with that saying they won't pass the budget so they can figure out theç spending and the income. if they do pass the budget you are going to hit them over the head and say look how you are spending money and raising taxes. damned if you do, damned if you don't if you are a democrat on this >> in their own words the budget they proposed was unsustainable and not credible. >> >> greta: that's director of the cbo, emdoor of said last week the fizz -- elmendorf said last week theç fiscal path is unsustainable. five years from now, unsustainable is not a word that makes you feel good. >> what happens in the budget we are living unright now is our debt gets to p levels.gets to interest on the debt in the last year of the president's

budget is about a trillion dollars, 914 billion dollars. >> greta: you blame that totally on him -- >> he inherited a good number of problems. but he took these problems and made them much, much, much worse. so much more spending.ç a new entitlement on top of it. there's a good statistic out by the tax foundation. very, very highly regarded think tank. this is what i worry about most. five, six years from now we are going to have a "tipping point" where there are so many people not even paying taxes living off the government versus people paying into the government. 20% of americans right now, 75% of their income from the government they are dependent on it. another 25%, 40% from the government relying on. according to the tack foundation more benefits in dollar value from the governmeft than they pay back intacts. if the budget we are unright now continues 70% of americans will get more from the

government in dollar terms in benefits than they pay out in taxes that's a dangerous "tipping point" that i believe will tip news becoming a social welfare is not who we are in america. that is not the american idea that in my opinion is what is being represented that is where our government is going.mñ moving an us a way from the great american idea and entrepreneurialç success story we are been to cradle to grave society we are backing. >> greta: the stimulus package got going and generated lots of jobs and the economy rolling would that avert that tipping point? >> it would help. >> greta: if by some fortune, good fortune, that refs up, we can avert that tipping point? >> if the economy and creates jobs, people go from collecting different benefits

to paying taxes.ç these numbers were precrisis numbers, preobama budget numbers, prehealth care numbers by the tax foundation. we haven't run the new numbers -- my suspicion is these numbers are much worse than what i just quoted. that's the path we are already on. now that you have passed the stimulus package, new bailouts and health care entitlement, it is going to be much worse. >> greta: next, powerful democrat might want a do over in the battle of the health care war. what are we talking about? find out, next. florida state attorney general gets back-up inç his fight against the federal government. the man provided -- providing that back-up is here. we are back in two. you've arrived at the biggest meeting

since you opened your design firm... ... your presentation didn't. so here's your moment of truth. which 3g network do you trust to email the file, get it printed, and have it waiting upstairs ? when you want your 3g network to work, you want verizon. visit verizon to see how our smartphones can help put your business on the map, and buy one blackberry curve for $29.99 and get one free. >> greta: henry waxman might want a doç over. several companies announced it would take a massive financial

hit from the new health care law. he scheduled a hearing to grill the ceos to make sure the companies were not playing politics. just trying to make the health care overall look bad. congressman waxman just canceled that hearing. why? officially congressman wac man says the ceos asked for more time before a hearing was health. is there more to the story? joining us -- should we accept at face value what is on the website? cancelled the ceos needed more time, did they? >> no. what happened here was companies such as at&t, deere and caterpillar reported profit hits from health reform. the government had given tax subsidies to companies to pay for retiree drug benefits. health reform was pulling that away the companies have to report the profit hits they were following the rules.

what happened next was, we government officials such as gary lockeç the commerce secretary saying coming up with the hits is premature and irresponsible. waxman calling for a hearing. more complicated and interesting from here. it guess further. elected officials who supported health reform said look, why aren't you companies coming up with a cost savings from health reform that is fantasy land accounting that is putting -- put these companies in danger of fabricating or faking their earnings. more interesting, elected officials who support health reform pointed to a business round tableç study prepared with hewitt associates that study said that health reform would deliver cost savings of about $3,000 per worker from $28,000 to $25,000 over 10 year period. when i looked throughout study, the study was not based on

obama care, this study said health reform put in place such as free market incentives like health savings accounts and medical malpractice reform you may see cost savings. it says the health reform bill nowç missing key ingredients needed to drive system wide change and medical liability reform is the centerpiece of the study, not in the present health reform bill. >> greta: all right liz on march 31st, i have a transcript from a segment we did. congressman waxman had just summoned the ceos. i talked to steve moore, we were sort of dismissive of it. it appears since the companies have an obligation to the sec rulings, so it fom not mislead investors. we thought it was congress trying to bully the ceos because they had dared to say something and perhaps

embarrass those who voted for the bill. and we would be loaded for bear on the day of the hearing and essentially unload on congress any sort of problems with congress has on health care. now, congressman waxman says they cancelled. did they really cancel or did congress give -- think think are going to getç whacked by the ceos? >> i think congress got smart and thought they would be humiliated by the ceos. i'm not hearing there's any trouble from companies having to show up at the hearing. last fall waxman called for a hearing into health insurance companies ceo pay. that hearing never came about. again, these are strong arm tactics calling into account these companies that are just following the rules. >> greta: which if indeed that is right. if this is congressional intimidation, that's not what they say on theç website.

i think it behooves the companies to step forward because congress shouldn't be abusive and try to intimidate by calling for these hearings. if it is a legitimate hearing, so be it. if the ceos cancelled so be it. if there is something more i hope the ceos will speak up. congress should also not play with the rules and try to intimidate. >> i agree. and i hope the ceos do speak up. we'll stay on the story if we hear anything we'll get back to you. >> greta: that's great. so far the website says no, but it seemsç odd. thank you. when tea party activists take on the republicans is a good thing for republicans? senator rick santorum on the record, next. we can't believe it, with tax day less than two hours away we found something to unite a republican and democrat. senator judd gregg and ron widen, minutes away. boss: so word's gettin' out that geico can help people save in even more ways -

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>> greta: tea party activists take on republicans it is good for republicans? what former senator santorum says who wants the gop to pick true conservatives for races. >> go beat 'em! that's what elections are all about. i encourage -- if you den win. you say the -- and if you don't win the fact that you have run the race and shown there is -- >> we going to win. >> greta: senator santorum joins us live and probably doesn't have any more republican friends.

must be a popular guy. >> what i'm saying is, there's a movement out there. people who state republican party not putting forth conservative candidates in a lot of areas that's true. my feeling is, if you can electric an conservative in the primary and electricç him in the general, go for it. i -- and elect him in the general, go for it. even if they lose, they've taken an incumbent or someone who may be running as a moderate and making sure they are looking over their shoulder that they have someone on their right they have to be aware of. get great is the different toon a republican, conservative republican and member of the tea party activist? >> tea party seems to be good, strong constitutionalist conservatives. i think they fit very wellç within the republican party. and i think they've been a great asset during this time. they've focused republican members on basic kinds of issues. i think the language you are

hearing from sarah palin and a lot of republicans in new orleans this past weekend comes a lot of it is feeding off of what the -- >> greta: are they conservative republicans? >> i think some would say they are not. if you look at 'em, 60% are republicans. 40% aren't. 40% are sort of folks who don't see themselves as political at all. but i think they fit well within the republican party and i'm excitedç to have them here. i'm going to be speaking to a group of them in pennsylvania saturday afternoon. >> greta: i want to ask you come november what makes you think after primaries republican party with the tea party whether they challenge them or not, what makes you think they are going to get in the tent come november? >> i'm not too sure i want them necessarily in the 10, it would be great -- >> greta: if they are not voting? >> they need to vote for the conservative candidate. in the end when you -- >> greta: what if it is a moderate republican?ç

>> that's the point i was making to this gentleman. run in the primary f you lose support the next best candidate, whoever is the most conservative candidate, support that candidate more in line with your viewpoint and come out again in two, six more years whatever the case may be. when i talk to them, they are all onboard with that they are not throughout to try to electric democrats or liberals by running third party candidates in the fall. they understand they have an opportunity between now and september when the primaries are being held to elect conservatives-$ i urge them to do in the democratic party. run conservatives in the democratic party primaries and communities where that can happen not just in republican parties. try to move both parties more toward what has made us successful as a country for 230 years. >> greta: you are going to speak to the tea party in pennsylvania. are there some republicans in office who stay far away from the tea party and don't want

to go near them and act like they are the playing? >> relatively few. most republicans recognize this organic movement out , to are getting off their couches or getting out of their -- off work and doing what they think is best for this country. they are excited to have these people involved. i think few republicans are worried about them. i think most think it is going to be for the party and the country. >> greta: fascinating to watch, people who have never been involved in politics are getting involved. >> they are. it is exciting. genuine article. i can't point to too many things that barack obama has done right for america butç this is one thing. >> greta: i don't think that's what he in mine, thank you. -- what he had in mind. thank you. a republican claiming the new health care law

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>> greta: the florida attorney general filed one of the lawsuits again the federal government he says the new health care law is unconstitutional. now florida state representative ryan nelson wants to give his state's attorney general some back-up. representative nelson just introduced an amendment that the federal government won't like. he joins us s@ght now. good evening, sir is this amendment that you have filed? >> thank you greta for having me on. we all know there's a big

mandate to the medicaid funding for the state governments. but what a lot of people don't realize they could also be subject to the taxes up to $700 per person for health care if they don't buy it. we are including those folks that rather than have an individual lawsuits, we are trying to add them into the lawsuit that the ag is presenting. get is this in anyç way similar to the virginia statute or not? virginia has filed separately from florida. they've raised the issues of constitutionality based on the commerce clause. they say it is unconstitutional that virginia can't order people to do this. >> i think it is a lot like the lawsuit going on in virginia. the 19 states we have, we've had criticism that we are spending taxpayer dollars to file in lawsuit. we've got some outside counsel which our share of the cost is onlyç $6,000. like i've told people, to save

a billion dollars just in medicaid funding for $6,000 attorney fees i think is a great use of assets. >> greta: i take it you are a republican, is that correct, sir? >> yes, ma'am, that is. >> greta: in filing your amendment, have you had any conversation with the state attorney general or anyone in his office working together in any form and a fax or a tweet back and forth? >> we have not tweeted back and forth. we've discussed the amendment fryç dan and we had them in there this morning to go over how the lawsuit will match up with what is already in the court system today. >> greta: how likely is it that this will become law and become law prior to this lawsuit going through the federal system in florida? they a scheduling order and scheduling of filings of pleadings through mid september. is this florida statute have

any likelihood of passing and when? >> i think so, yes, ma'am. i think because of our session ends theç last friday in april, i would say we've got another 2 1/2 weeks to go. i feel confident we will get in bill passed out before the end of session. >> greta: do you have a republican legislature in florida or a democrat? >> it is republican legislature. >> greta: do you have support from your colleagues? >> yes, i think everybody has been supportive. we have the florida health care freedom act which is kind of the impetus of this. we saw the bill coming down from d.c. and they started without that act.ç now we are moving into okay because in could go into september before we get in suit settled, we thought new might be another avenue to add other people into the lawsuit so we have additional people supporting this movement.

>> greta: sir, thank you very much. >> thank you for having me on greta. >> greta: former solicitor general served under president reagan and call the health care lawsuits again the federal government nonsense. he joins us live. good evening, sir.ç >> good evening. >> greta: i guess i should add you are a republican served in the reagan justice department, you are a president obama supporter and i assume voted for president obama, is that correct, sir? >> i don't know whether i'm a president obama support he, but i did vote for him, because i couldn't vote for senator palin. >> greta: -- you have said this lawsuit in florida is ridiculous, why? >> that's correct it is ridiculous. because, first of all they say that they are going to passç a statute which will exempt florida citizens from the

reach of the . if the act is unconstitutional you don't need it. if the act is constitutional, it is useless. because we fought a civil war about that state legislatures can't just bow out of the constitutional federal statute that's nonsense. i think any serious person knows that so, the question is, is it constitutional?ç it seems to me, though there are a lot of things to object in this, and i would be the first to say so, the constitution is not one of them if you don't like it, repeal it or amendment it. but don't ask the courts to do the job for you, because they won't. >> greta: well, a couple of things. you and i both practiced law maybe you have more certaintiy than i do. courts have often times surprised member the supreme court have often times issued decisions that have

surprised me. the issue that will confront theç federal judge, and supreme court if it goes on is whether or not the commerce clause gives the federal government the power to do this. is this a simple way to look at it? >> yes. >> greta: does the constitution in your opinion enable them? >> it does. the statute which front of me, i bothered to read it. says that the health insurance industry is an 854 billion dollar industryç that sounds like commerce. the supreme court just five years ago with justice scalia in the majority, said that it is all right under the commerce clause to make it illegal for california for residents in california to grow pot for their own use,

because that has affect on interstate commerce. well, if that has affect on interstate commerce, what happens in an 854 billion dollar nationalç industry certainly does. >> greta: is there any possibility, in your mind, or any thought that you could be wrong? >> well, i suppose i could. but i'll tell you what, i program and eat a hat, which i bought in australia last month, made of kangaroo skin. >> greta: hang on to that i don't know if you are going to win or lose. the video from it will spike anything with that hat.ç >> greta, what are you gonna do if they come out wait i say they will? >> greta: see this is where i differ from you. i don't know how they are going to come out on this i think is one of those cases

where it depends on who the judge is and almost the luck of the draw. so many cases surprise me whether it is gore vs. bush, people were uncertain about that i have so many times walked into the courtroom and thought something was going to be decided one way and walked out hearing something different. i wouldn'tç daresay this either way. >> i daresay that i look at that 2005 lawsuit about the pot in california. if somebody growing pot in their basement is interstate commerce and scalia said so, i don't know where you are going to get five votes the other way. >> greta: except i've seen the supreme court reverse themselves. the most incredible landmark decision plessy vs. ferguson, who would have that, valid law forç 70 years before supreme court some --

>> greta this was five years ago and scalia was in the majority. >> greta: all i can say i have no idea what is going to happen. but hang on to that hat. >> i will, i value it. >> greta: all right, thank you sir, good luck sir. >> bye-bye. >> greta: is coming up after this show on the o'reilly factor. bill: is president obama proud america's a super power? maybe not. dennis miller has advice for the president, coming upç on the factor this evening. >> greta: o'reilly is at 11. next, this is not a joke, we found an issue to bring the two political partiesing to. it has to do with your taxes. democratic senator widen and republican senator gregg. plus tax advice from whoopi goldberg who says kiss my -- part of human an natty.

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start your discovery today. ♪ could open a world of wonder ? ♪ ♪ so sensory ♪ so satisfying ♪ the discovery ♪ never seems to stop ♪ ♪ it's the magic friskies ♪ ♪ makes happen ♪ every day ♪ in so many ways ♪ friskies ♪ feed the senses . let's go to our new york newsroom where ainsley earhardt is standing by with headlines. >> reporter: the federal reserve reporting mixed signals about the state of the nation's economy. on the upside recovery seems to be fledding most parts of the country better sales and factories boosting production. bernanke predicts the nation's

10% jobless rate won't dip any time soon many u.s. companies are still reluctant to start retheiring. in will start with mines which have had repeated con bus tan rips in the past year. -- combustion rips in the past year. we now return to on the record with greta. have a good night. >> greta: stop what you were doing and prepared to be stunned. with tax day less than 90 minutes' way we found an issue that a republicanç and democrat agree on. maybe that should be a fox news alert. earlier republican senators judd gregg and ron widen went on the record about their bipartisan tax reform proposal this is sort after unusual

concept, bipartisanship. is it not? >> new and original thought but we like it. we are making great progress and doing what we think are good things. >> people are used to the fights between democrats and republicans. they come back and after a long day they turn on the tf and see that what senator gregg and you are saying instead of democrats and republicans going after each other, let's go after the special interest groups that have hijacked the tax code and keeping rates up. >> greta: there seems to be two issues one is the proposal. the second is how you get the senate or anyone to consider it. do you know anybody in the u.s. senate, senator gregg who does not think our tax code needs some work? >> no that is the universally acceptedç fact. all you have to do is look at it. this big, extremely complicated.

we waste hundreds of millions of man powers a -- man hours a year trying to comply. >> in a place with 100 votes, would you probably get 103 votes -- get should be an easy task to get it considered. is there any problem with you getting your tax bill considered? >> first of all this is already building on a model we ronald reagan teaming up with bill bradley a host of democrats and republicans. it is a straightforward proposition. go in, clean out the junk. clean out the special interest rates and keep progress. the big challenge is every one lobby behind it. they are going to the finance committee on which i serve, they are going to say you take away our tax break and western civilization will end. >> greta: will your party take

this up? >> the big challenge is getting the leadership in bothç parties willing to take on the from groups. i think we have a good chance with the deficit commission this summer. senator gregg is a member i'm on the budget committee. when they look at the options this summer given the fact that right now the spending, far exceeds revenue, senator gregg and i can say there aren't many appealing alternatives out there. this is one you ought to like. >> two things are going to give this live. number one it makes sense this is taking the tax laws. making them simpler, fair and much more pro growth.ç so are we are more competitive in the world so companies will expand here rather than go some place like ireland where they get a tax break this is a jobs' bill, that's the first thing. >> greta: also simple. >> simple and fair. >> greta: for most americans, the tax code is so complicated.

this makes it simple, whether it is good or not. >> a vast amount will fill out their taxes on one page. we take six brackets,ç make three brackets. we give a huge incentive for corporations to expand top rate from 35% to 24%. we create a fairer tax law so people know you are not going to game the system. >> middle class person gets to triple their standard deductions. if you are making 50, 60,000 half your income is off-limits if you want to buy a new piece of equipment you write it off in the first year. talkingç to middle class peopl, getting a substantial cut, trying command competing in a tough global marketplace we have benefits for them immediately. >> greta: in is the type of

bill we are almost craving. one bipartisanship, to see you working together on this, we don't in the public see much of that lately. to simplify that humongous code we love that. everybody thinks the tax code is a mess. we are creating some fix. >> absolutely we are. the american people get this. it is noá the american people you have to sell on this concept. corporate america gets it too. you have to sell this bubble that surrounds washington. as senator widen pointed out, every item in the tax law has a group that defends it a what we are doing is taking a lot of those ups out and replacing it with a flatter, fairer tax, equally progressive system and creating huge incentives for capital formation which is critical to creating jobs. there are interests that are going to be losers.ç >> greta: this must be like

war, a decision that you make that you set politic as side. you set special interests aside make a decision for the american people for simplicity and get in the economy, if this is a good discussion it ought to be -- good decision it ought to be considered and critically. >> you are being logical, heaven forbid logic should break out here is what expression interest groups are going to try to say to the american people. they are going to use advertising and blogs to say senatorç gregg and widen are talking about taking away something you like. it might be something but it is something you like. those guys never will cut your rates across>lkq!/t board. so they are going to frighten people, tell them they are going to be giving up something and they won't get the rate cuts. what we are prepared to say is like in 1986 when a republican president together with a bunch of democrats, we are prepared to go the distance,

this is the economic equivalent of war right now. >> greta: next, the west of the rest.ç be careful what tweet. it might become part of history. we'll explain. a stupid criminal who might be the khrupsiest man alive. if you are -- clumpsiest man alive. if you are doing housework now give it a rest we found the solution. my doctor said most calcium supplements... aren't absorbed properly unless taken with food. he recommended citracal. it's different -- it's calcium citrate, so it can be absorbed with or without food. also available in small, easy-to-swallow petites. citracal.

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>> greta: here is the best of the rest.ç another addition to the on the record stupid criminal file this guy can also be called a clumsy criminal. check this out. a man in tulsa, oklahoma tried to burglarize a drugstore and ran into a problem. he trip add alarm he tried escape using a ladder to climb through the roof it didn't work well. the stupid criminal climbed the ladder and fem. climbed it again and fell again. it took himself event tries to finally escape. he is still at large. okay maybe he's not that stupid, he did get away. no one likes to beç do lunde we may have a partial solution. a team of researchers at california berkeley invented a towel-folding robot. can pick up a towel from a pile of laundry, perfectly fold and stack it.

the only problem is efficiency 25 pins to fold each towel. if you don't have to -- 25 minutes to fold each towel if you don't have to did it, who cares. once the robot learns how to iron we are going to get one. the library of congress will keep anç archive of every public tweet ever sent. that is a lot of the twitter users send 55 million tweets a day most of which are publicly available on the web. privacy restrictions will not be archived will be used for research on culture and history. speaking of twitter, check us out on twitter.com/gretawire. the best of the rest. taxing makes whoopi goldberg say one thin ]hat is kiss my -- wheat let whoopi finish

that sentence. is that we need to look for other forms of energy. solar power and wind power... sensible use of oil and natural gas. diversity gives us a lot more power. diversity is the key. the energy mix of the future is going to be everything.

>> greta: 11:00 is almost here, flash those studio lights. it's time. last call. whoopi goldberg wants you to be ready for tax day. >> here is what i just want to make you aware of to make your day. tax that's you probably been paying at some point, building permit tax. cigarette tax. dog license tax. fishing license tax. fuel permit tax, hunting license hachl, inher tebs tax,

property tax. service charge tax. rolled usage tax. you go down the road, they are clicking number as way saying you owe us for walking up in this bad boy. and wait. it gets better, telephone, federal excise tax, universal fee tax, telephone federal state and local surcharge tax. telephone minimum usage tax. telephone recurring and nonrecurring charges tax. telephone state and local tax. telephone usage charge tax. vehicle license tax. well permit, worker's compensation. do you know what? kiss my behind! kiss my behind sclam. >> we're kissing that kiss my whatever doesn't work with the irs. that is your last call. we're closing down shop. we'll see you all again