>> i think there's an element of let's just lighten up. if any ladies want to tell me i'm good looking after tonight, i'm wide open . put it up right there. >> sean: we are out of time. greta is next. >> greta: karl rove is in the middle of a republican tornado. it started last night when delaware's new republican nominee for the senate christine o'donnell turned the republican party upside down. backed by the tea party express and sarah palin now she is the big winner in delaware. last night's delaware vote count was hardly complete when karl rove announced christine o'donnell has a checkered background and questioned whether she could win the general election. now all hell has broken loose. >> i think that's an exaggeration to say all heck has broken loose.

>> greta: michelle malkin was on with sean and called you vicious. you don't think all hell is breaking loose? >> no. >> greta: what is going on in? >> in a primary people in the republican primary didn't care about these issues. in a general election there will be questions about her background. she didn't pay her federal income taxes in 2005. >> greta: she may be a hero for some. although it is against the law. >> when she had a tax lien she said she is puzzled by it. she failed to make her mortgage in 2007 by march of 2008 the bank is moving for foreclosure they will foreclosure in late may. she set up a sheriff's action on august 1st. shortly before the auction her boyfriend buys that $91,000 house from her and she blames it on a technical mistake by the bank. she claimed to be a graduate

in the early 90s. turns out she never graduated from college because the college didn't give her a diploma because she had several thousand dollars worth of unpaid bills she refused to settle up on until this year in a republican primary running a guy who vote for stimulus, cap and trade was wrong on life -- these kind of issues didn't matter general election she has to give a better answer to these questions and what is -- than what is up on her website. >> greta: you know the answer? i would look into the camera and say, you know what, it is true. and you know what. i do have money problems, i'm like you. that's why you need to send me to washington. no one understands your problems of banks not making mortgages, sick of the fat cats, i know your problem. that's why the tea party is behind her. >> let's be careful about making this into establishment

tea party. yesterday the tea party candidate in new hampshire was ovide lamontagne who has lost to kelly ayotte. sarah palin on the same side of that contest. we both were supporting kelly ayotte over the tea party candidate this is a different issue. almost any credible conservative is likely to beaten mike castle. this is not about mike castle and establishment vs. tea party this is whether conservatives can say we criticize president obama for an pinting geithner to his cabinet because he doesn't pay his attentions or we are critical of members of congress who think they are above the law. at the same time blindly defend republican candidates who might have this background. she has headlines popping up in the biggest newspaper in the state, o'donnell faces campaign debt and back tax issues. in the primary it didn't matter in a general election, depends on two thing, does

chef a good, strong message about taxes, deficit spending and obamacare? and can she reassure the people of the state that this doesn't matter? she sort of following your advice. she says i think the fact that i've struggled financially makes me so sympathy inc. on the other hand she doesn't -- sympathetic. on the other hand she doesn't take responsibility. it is the bank's fault she ended up losing her house. i think people would appreciate candor. >> greta: i don't know i'm right. i just sort of threw it out there. i'm not so sure the american vote isn't a huge groundswell. we saw with it the town hall meetings the democrats got slapped around on health care. people never demonstrated, protest, they were furious they went out there. i don't know whether she is a good candidate or bad for the republican party. one thing is she feels the pain because she has lived the pain. not just lip service.

i have no clue what the delaware electorate is like. i'm not so quick to count someone out who won a primary against a man who had won many elections in that stay >> you got a couple points worth mentioning. it was a huge turn out and stunner. this was a nine term congressman and a two term governor. well respected member of the political community in washington, d.c. and beloved at home and gets defeat -- defeated in the republican primary. there was a big turn out yesterday. typically primaries in delaware have 20,000 people vote. people anticipated it might got to 30,000. it got to nearly 60,000. >> greta: is that 60,000, new republicans or republican universe? >> universe, closed primary. the second thing is she did an extraordinary thing. it was a stunning upset.

when you are running in a primary. when you are running in the general election it is a different thing. >> greta: we haven't gotten to that general election. we've seen it massachusetts, -- >> i'm not certain scott brown would have won the senate race had he not paid his income taxes. i'm not sure miller would have won in alaska if he his house foreclosed on and blamed it by a mistake by the bank. >> greta: people can't get car loans. everybody hates banks. the typical american hates banks, i don't know >> with all due respect. technical error by the bank. i'm not sure how many people go through a foreclosure and can blame it on a technical error by the bank. >> greta: i have no clue. >> i got a lot of e-mails today and i appreciate hearing from people about this. i was like why were you not

cheering for the republican victor? i have two roles, when i'm on aim an analysis i come with a viewpoint with my republican viewpoint. my job is to analyze these things so viewers can better understand from somebody who has been in a lot of campaigns what might be happening. i'm a cheerleading outside of that. i'm free like everybody else to have my political opinions. and i do it. i'm out there helping raise money for an organization that has already spent three million dollars on behalf of sharron angle in nevada and first up with ads with buck in colorado and putting money into ohio and missouri and pen. putting in 10 million dollars forget out vote ons in florida with marco rubio. i'm the guy who gave money to marco rubio during the start of his campaign, personal money to him. but i've a role when i'm on fox to call 'em like i see 'em. i may be wrong we'll see on november 3rd. we'll see if she runs well and wins or she doesn't. i think it is all within her

ability to do. >> greta: notify idea whether you are right or wrong on this. i will -- i have no idea whether you are right or wrong on this i don't know if she should be elected, i have no clue. but i'm always cautious when i see a groundswell of things changing across the country. as arrogant as i can be about some things i'm less arrogant when i see things rumbling. >> touched on something. there's something big going on around the country we saw it in that state. if you look back in 2002 three million more americans voted democratic primaries than republican primaries. 2006 off year election three million more voted in democratic primaries than republican primaries. as of last night final primaries saturday as of last night it looks like 4 1/2 million more americans have voted in the republican primaries than democratic primaries. last time we had more republicans vote in the off year primaries, than democrats

was 1926. it is happening everywhere. we have seven democrat senators today, senate seats, excuse me, in which the lead. we have three where the race is tied within the margin of error. boxer, feingold and reid two democrats ahead by single digits ahead of the republican votes. there's a ic wave building, as a result we are likely to see a lot of republicans win who in normal times wouldn't have had a chance. >> greta: grow where going to take a quick break. rush limbaugh and karl do not agree about the stunner. >> three politicians making major headlines are here, marco rubio, mitch mcconnell and ben nelson, all minutes away. >> plus, brett favre was nothing. guess who is bringing back the "american idol" smash "pants

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. where is the important of party unity now? pac, that's all the election is about limbaugh we to get control of the senate. we to get control of the senate! now they don't care about it. 50 first vote, might be christine o'donnell, -- 51st

vote might be christine o'donnell. they keep telling us we have to have a big tent. where is the tent? the tent has collapsed! the truth is there never was a tent! >> greta: is rush limbaugh right? karl rove is back with us. big tent? >> i think there is a big tent. for example, she got -- christine o'donnell got $750,000 according to her campaign today in internet contributions. >> greta: and a bunch of join the club late like governor romney -- i love the late endorsements. >> last night fox reported that the national republican senator committee wasn't going to give her any money. i said say that? they said absolutely not we just cut her a check for $42,000. there is a big tent. we saw it last night. the tea party candidate in new hampshire lost to the

nontea party candidate who is still a good conservative. we saw it in kansas, sarah palin and i backed the tea party favorite and the more moderate member won. we have a big party. >> greta: if it is a big party, i'm not sure how big i would be in a similar situation. would you not think that congressman castle would have called and congratulated her? >> look, gout to give people a chance to workguj their way through. in just a couple weeks ago the o'donnell campaign was peddling mores he an affair with a young man. the man has been married for many decades. >> greta: if her campaign, if she is responsible for that, that would be a disqualifier for me. >> he's been in office a long time. they said harsh things about each you cannot expect people to get over these things quickly. >> greta: with the exception of president clinton after

what jerry brown said about him. >> there we go. >> greta: to switch gears, clinton is cable of helping my friend jerry brown. >> jerry brown mocked president clinton and president clinton was big enough to say i still endorse him yesterday. >> it made clinton look big. it made jerry brown look small when he said those things. it made clinton look big when he said i'm for jerry brown for governor of the california. interestingly enough brown is behind. some of the latest polls behind as much by five points. meg whitman just put another 15 million dollars into the race today >> greta: chump change to her. you have an op-ed out tomorrow in which you say you are mystified by president obama. >> these guys had enormous credit for being on message

and disciplined and having great sensitivity to how the american people would perceive them and what they said. look at the summer of recovery, why is he taking on john boehner? what does that have to do -- it makes the president look small it is not effective. these guys are like a different theme a minute. why are we talking about tax fast? rasmussen survey in august showed republicans are trusted by the american people on the issue of taxes by a margin of 52-36. yet that's the issue that the president is attempting to put on the front burner. why is he not coordinating with the democrats on message? why immigration reform now? then stimulus this is a mishmash of things. it makes the president look >> dari: there's a narrative he's lost control of it and -- there's a narrative and he's lot control of. battle ground poll longtime respected poll run by democrat and republican alike, politico response spore -- sponsoring.

it will show in the many years of this poll conducted that republicans and democrats are tied on the issue of which party do you trust more on jobs? republicans win elections when they are three, four, five points behind now they are tied. >> greta: "wall street journal" op-ed page tomorrow, your column. karl nice to see. >> that you. >> greta: next you go literally on the road with marco rubio. on the palin effect the health care war of the and last night's o'donnell stunner. and mitch mcconnell does on the record. did you hear an what he did? host: could switching to geico really save you 15% or more on car insurance?

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. >> greta: now you, yes you are going on the road with marco rubio. the republican is locked in a battle for the u.s. senate seat in florida. earlier today hit the road in his campaign van as he traveled to events in florida. delaware, a stunner, most people were stunned to discover that christine o'donnell won that primary. were you surprised? >> i have not, because of our race is so complicated, i

haven't followed it. >> greta: not at all? >> i don't note in-- i don't know -- >> greta: this is the hottest race in the country last night, the tea party movement? >> because we've got a significant race going on here and it keeps us busy. >> greta: i'm busy, we are all busy. >> it is your job to follow these races my job is to be effective candidate in this race. i know the outcome was not what people expected. that i'm aware of, at lost three months ago or whatever. i think there's something happening out there. there's this growing sentiment not just here in florida but across the country that things aren't going right. wait we've been doing things in washington over the last 10, 12 years with both parties doesn't feel right and maybe it is time to shake that up a bit. i'm not upset about it or anything but entire political establishment lined up against

me. all the leadership in washington got behind charlie crist here in florida as well. that didn't deter us. it didn't make us angry. it made us focus on what this race should be about. obviously that has changed now. i think it is -- people are -- they think washington is broken. both parties are to blame. they want folks that are going to washington stand up against it and offer a clear all turny. >> greta: i don't want to put wore in your mouth. you must have empathy for christine o'donnell. this has thrown a stink bomb into the republican party. they were expecting to pick that seat up in the general election. now many republicans think that it is lost. i don't know it is. that's what some say. >> my advice to anyone in that position, at the end of the day, this is not personal. the objective to get people elected to the united states senate that going to do positive things for our future. people that are going to fight against the direction this administration is taking our

country and offer a clear alternative. >> is there a sarah palin effect in this? she is a lightning rod in terms of people reacting to her positively, negatively she endorsed ko. she has had other endorsements that have been successful. is there a governor sarah palin effect? >> i think she is. she extremely popular among republicans. i think an endorsement is helpful. her track record proves it. it is hard to argue against that. i think even governor palin is tapping into what is happening in washington is the wrong direction she is effective spokesperson on behalf of that sentiment. >> greta: who do you admire in the u.s. senate? who would you like to model yourself after? i realize you will be your own manned. >> it depends on the number of different issues and number of different senators.

i start with the ones i know personally. i have great admiration for senator demint and the help he has given me in this campaign. he has great understanding there was a sentiment in america that needed more voices. we are definitely grateful for him and to him in that regard. i think senator mcconnell has done a phenomenal job of holding that caucus together. he recently as a couple of days ago shed light on the bush tax cuts. they are not new tax cuts they are the existing tax code. anybody who is not in favor of extending them is in favor of a tax increase. >> greta: even for the rich? >> that's class warfare. the idea we should raise taxes on anybody is mind-boggling given the environment we are living in now many they label these folks as rich. what they are is 30% of consumer spending in america will be impacted. significant number of small

businesses. not to mention these other taxes that will go up, capital gains, tax on dividends, et cetera. i think there's a groaning census across party lines with five democratic senators lined up in the senate saying they oppose the increases. raising taxes on anybody give then this economic climate is wrong. >> greta: i suspect you don't like the health care bill is that fair? >> i think it should be repealed. >> greta: the different between not liking the direction or the idea or the policy or what it is doing, there's a difference between that and whether or not it is constitutional or not. >> they are two different issues. and there are valid arguments made. here attorney general mccollum and other attorney generals are making what i think is a valid argument. does the federal government have the right to require individuals to buy health insurance?

that's one argument about the limits of federal power. the others are whether they can compel states to spend more on their medicaid program? another valid argument. one the judge seems intrigued by, didn't dismiss it. the government is saying this is a voluntary program. you are telling the states if you want to have a medicaid program these are additional costs you have to pick up or you are not going to have one at all. these are important, i think constitutional arguments that are being made. i think the stays are right in their arguments on it. >> greta: -- there is so much more in our interview with marco rubio. we are going to post it on gretawire. he answers questions about afghanistan, iran and tells you whether he uses an ipad or laptop. so start guessing. check out the entire interview at gretawire.com. >> ex-democrat clobbered for being tone-deaf to the tea party. are republicans now getting a

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republican nomination in new york. are republicans waking up -- are politicians waking up that americans might be agitated? >> it important to remember when the real election is. it is november 2nd. all of this energy that you have seen on display in republican primaries will be directed 100% against democrats. none of these tea party candidates are running as inches. all part of the republican movement to improve -- inch . all part of the republican movement to improve our numbers in the house and senate. i want more members. right now i'm the leader of 41. i would like to be leader of a larger group after november 2nd. >> greta: taxes. you have introduced a bill to extend the bush tax cuts to everybody. >> first let's get the know clay right many when you use the terminology -- get the

nomenclature right. this debate is about a tax increase in the middle of a recession. our friends say it is the top two brackets. who are those people? it is 750,000 of our most successful small businesses. it could capture 50% of the small business income. impact 25% of the workforce in the middle of a recession. the good news is more democrats are indicating they agree with us. seven in the senate. steny hoyer the democratic leader in the house said he would be open to extending for at lost a period of time. joe manchin governor of the west virginia fighting for his life trying to get elected to robert byrd's senate seat thought they should be extend. i've introduced permanent law current tax rate and avoid a tax increase in the middle of a investigation. >> greta: give me a realistic

timetable. what is gonna happen ? >> it is hard to answer the hypothetical, because the democrats are in the majority. they got to decide whether they want to have this debate now. it could occur after the election. if they want to have the debate now about the appropriateness of raising taxes in the middle of a recession we are happy to have that debate. >> greta: it is not going to happen is that the message? >> i done know i think it will be up to the majority to decide whether we have this debate now or later. it needs to be had, because at the end of the year, taxes will go up for everyone, none of us think that's a good idea. >> greta: what about what leader boehner said in the house? he said i hate to try to quote him often top of my head, he said if he had to or something, if it came to that, he would vote for limiting the extension or the continue -- continuation of the current tax code to include everybody. >> i think it is important to

remember that the best solution is to raise taxes on no one that is my position, it is the position of all of my members. it is the position of sieve event -- of seven democratic senators. and that is what ought to be done. i don't think we need to answer hypotheticals about what might be the ultimate outcome. we need to have a majority commitment to raise taxes on no one in the middle of a recession. >> greta: how much do you think is politics? the one thing that strikes me is that there's been no confusion as to when these tax kits or whatever you want to characterize them, we know they are going to expire in january. we know nothing was done about it last january, february, march. now we are inching up on election day. suddenly everybody now wants to talk about taxes. it is like the american people sit and watch as the two parties sort of rangle for

position. >> the majority has the timing they thought i was good to raise taxes on the wealthy before the election. i think they are having serious thoughts about whether this is good debate for them. all of my members and some of their members think we ought not to raise taxes on anyone in the middle of a recession. our view is, talking about the politics of it, the merits are clear. we shouldn't be raising taxes. if you are talking about the politic of it, if they want this debate before election that is great we can't wait to get at it. >> greta: the political aspect is that taxes raise revenue and the government is starving for money and the president also thinks the democratic philosophy is if we get the money we can spend it and get the economy going. the republican view is you want to leave the money with people so they can do it

themselves. i guess the question is, how is the economy doing? are >> we are treading water. we've tried all the government spending on the stimulus, on the health care bill. we hired lots of new federal employees, we've borrowed money. the way to get the governor revenue is get the private sector growing. the way you do that is to not sock our most productive small businesses in the country with a big tax increase. the only way we are going to increase government revenue and narrow deficit to have a robust economy. we've tried government spending, it failed. the time to pivot and take care of the private sector is now. the last thing you would want to do is raise taxes in the middle of a recession on our small businesses. great >> greta: next senator nelson goes on the record. is he going to filibust

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>> from america's news headquarters, i'm ainsley earhardt. california governor arnold schwarzenegger's asking president obama for federal aid for the victims of last week's deadly gas pipeline explosion. on wednesday, the governor toured the devastated san bruno neighborhood. he credited emergency crews for what he called their quick action, responding to the massive blast.

at least four people were killed. three others remain missing. the inferno also destroyed nearly 40 homes. a government report out just hours from now reveals illegal drug use rose last year to the highest level of nearly a decade, attributed to a sharp increase in marijuana use. it cited a surge in ecstasy and methamphetamine abuse. one official blaming the rise on the eroding attitudes about the perception of harm to illegal drugs. i'm ainsley earhardt. we return to "on the record." rh greta. >> greta: stop number two. democratic senator nelson went on the record. is senator nelson ready to team up with republicans and filibuster his own party on bush tax cuts? first we asked about last night's primaries. nice to see you. what do you make of last night's election in delaware? not your party, but certainly

is a stunning upset. >> i think there were a lot of surprises last night. the surprise in delaware was a surprise. big surprise for a lot of people. maybe the impact is greater now because it was a primary on the republican party. the surprise was for everybody. >> greta: it is interesting i've been talking to a number of senators. in the beginning there was discussion how the democrats were surprised. they had town hall meetings when everyone was getting yelled at saying democrats weren't paying attention. scott brown takes the seat in massachusetts. now the republicans they've got bennet, utah, alaska, delaware, in new york the tea party candidate. there's a shake-up on the republican side as well. >> that means we all need to be on our toes many if you are focused -- [ inaudible ] i paid close attention a year ago to what was going on in

nebraska. we had tea parties, i knew people were concerned. we have tried to focus on how we deal with people back home with better explanations. more information. sometimes it is not as important how you vote but why you vote for many, many people. we want to make sure that we are getting our message out and responding to those concerns that people have. >> greta: hot issue here, i think you are bucking your party a little, extension of what is called the bush tax cuts. where the, as i understand it, democrats want to extend the tax cuts except for those who make more than $250,000 a year. republicans want to do it across the board. you are joining the republicans on that is that right? >> that's right. i think is no time to be raising any taxes on anybody. we are in a delicate point in recovery. the last thing we need to do is do anything that would slow down that recovery or send us

into a double dip. we know that there's some costs associated with extending the tax cuts. there's sometimes you have to do that which has to be done right on spot and make decisions this is one, i that i is critically important. that is, we extend the tax cuts for all parties not just for the middle income class. >> greta: do you feel so strong that you would join the republicans in the filibuster? >> i don't think it will come to that. >> greta: if it did. >> i don't think we'll have to come to a filibuster to get it done. >> greta: do i get an answer? >> i don't think there's an answer when there's not an effort to filibuster. who wants to invite one. my hope is we'll find a bipartisan way to extend the tax cuts. there are a number of other democrats who have begun to say they want to extend all the tax cuts. when there are enough on both sides of the aisle, generally

you can put something together and don't end up with a filibuster: i think a lot of people are still opposed to the stimulus because i don't think they understand only a third of that package consisted of tax cuts. 300 billion dollars of the 878 billion dollar package were tax cuts. so it want all spending. only that was before for various programs. >> greta: 600 billion spending, 300 billion tax cuts give or take? >> roughly.rh >> greta: has it worked? >> you have to have -- go back and look at county by county in nebraska. we've done an analysis of that. i think it has worked. >> greta: you have a low unemployment rate 4.7%. your state is doing great. >> in part because the governor was able to use 253 million dollars of the

stimulus to plug his deficit gap last budget. that budget gap is up to 750 million dollars. maybe growing, we don't know yet. there won't be that kind of money available this time around to plug that budget gap. we may be late to this recession, and maybe late coming out of it. i don't think anybody knows now if you go back and see that 300 and some million dollars in addition to the used to plug the gap, 300 million dollars, was left in the state because of tax cuts that's real money for the state. i think there's a combination of spending, but also tax cuts, nine million dollars every week for two years was left in the state for people to spend. >> greta: at lost you are thought of as a conservative democrat. i don't mean to label. sounds like you an agree with the republican political philosophy of tax cuts. that's what you just spoke so eloquently about in terms of

the stimulus package. does that mean -- do i take away from that, that you have some thought on the spending done here? >> absolutely. you have to control the spending and taxes as wellviq. people said you are supporting these tax cut extensions, why now? i was there one of the deciding votes in 2001 when we passed the tax cuts, during the bush years. a number of us across the aisle voted for those. i think that controlling taxes what we do. particularly, with an economy that is trying to come back out of a recession. in addition, i think spending is extremely important. i'm hopeful that our appropriations process this year will hold the line on any growth in spending. we've in our office have no raises for anybody this year. we are trying to hold the line and make certain that we watch

spending. back in the 2001 tax cuts, i through the senate of course it didn't survive the process called the committee, the conference committee, but it was called -- i worked with senator snowe for what we call a trigger, so that if spending went up above a certain level or tax receipts dropped below a certain level or some combination of that occurred, one the tax cuts were in place, then the tax cuts and spending would come back before congress to take a look at. so it wasn't on autopilot. unfortunately, it got on autopilot. so when we started having the recession and started engaging in two wars we didn't come back and revis. >> i think we should have done that. we may not be where we are with the economy the way we are today. >> greta: next, the best of the rest. if you think the fights are bad in washington, have you

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tkpwrelt here's the best of the rest. you think it is just democrats and republicans fighting about the bush tax cuts? think again. here it is the ladies of the view. >> what is going to happen with the tax increase it is going to affect seniors. >> it is not an increase. >> it is going to be an increase. >> stop saying it is an increase because it is not. >> we'll talk in january. >> the democrats want to eliminate the tax kits for the rich, that's all. >> they are changing the lingo. all seen jurors are going to pay the price on this tax and it is a crime in this country. -- all if you don't make over $250,000 are not -- when you look at it you are going to see what is going to happen. they are changing all terminology. [ talking over each other ] >> greta: maybe the ladies

should pay attention to this next story. >> a cat in mississippi is proving the most opposite breeds can live in harm the cat just adopted an abandoned baby squirrel. the cat has treated the squirrel like one of her kittens feeding the squirrel and grooming him. the squirrel thinks he's a cat because he likes to purr. ♪ pants on the ground. >> greta: yes pants on the ground an on the record favorite. we never dreamed the "american idol" hit would be used by a judge. during a suspected drug deal in minnesota police told a suspect to put his hands in the air. when he raised his articles his already drooping pants fell to the ground. when an officer pulled the pans up she found a gun. the man's lawyers challenged the legality of the pants hoisting. a judge ruled pulling up the man's pants did not violate his rights. saying we are confident our opinion will not be misconstrued to suggest that

an officer can meddle with a person's clothes to refrain, pants on the ground. there you have the best of the rest. >> leaked information about president obama's new book. vice president biden is not going to like this. stay tuned. hi. you know, if we had let fedex office pri our presentation, they could have shipped it too. saved ourselves the hassle. i'm not too sure about this. look at this. [ security agent ] right. you never kick off with sales figures. kicking off with sales figures! i'm yawning. i'm yawning some more. aaaaaaaand... [ snores ] i see your pnt. yeah.

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>> greta: 11:00 is rmt here, flash those studio lights because it's time. last call. dhu hear about the inside scoop of president obama's new book? >> president obama is going to release a fun, easy to read children's book this november. it's for ages biden and up. obama is publishing a children's book with pictures by the same guy that i will straighted "the little engine that could". instead of saying i think i can, i think i can, the main character says "i thought i could, i thought i could". ouch that, is your last call. lights are blinking and we're closing down shop. thanks for being with us tonight.