head off in the morning if the "new york times" had a negative story on the front page because he knew that the decisions we were making were right for the long haul. >> sean: mr. president, it's been an honor to have you. thank you for being with us. >> appreciate. >> sean: president bush, ladies and gentlemen. [ applause ] that is all the time we have left this evening. thank you to everybody in the audience. thank you, mr. president. been a great honor. been a great honor. >> thank you. captioned by closed captioning services, inc >> greta: tonight, well, they're back! the lame duck congress has begun and there is lots on capitol hill moving and shaking, but everyone wants to know one thing. are your taxes going up or not? republican senator john thune joins us live. before i ask you about the taxes -- good evening, sir. i have should say. good evening and welcome back to washington. >> good evening. >> greta: before i ask you about taxes i understand that you are going to do something about discretionary spending. >> right. we have organizational meeting tomorrow. and number of resolutions will be offered. i'm going to offer one that would take us back to the 2008

spending levels. index that for inflation. that saves $450 billion over ten years. $90 billion next year alone. >> greta: why not include all spending. mandatory as well as discretionary? >> we have to take on mandatory spending. we have to take on entitlement programs. that's where the real money is as they say. this is an important first step. i think it will demonstrate to the american people we're serious. if we can do this on discretionary spending. by the way, it's gone up 21% in the last two years in the time the inflation is 3.#%. it's growing three times inflation. we have to have the entitlement program debate because it will be two-third of the budget. >> greta: was discretionary spending i looked it up before is 37% of the spending. if you wanted 37% you ask for all of it. let's cut all spending. no, no, no. okay. let's just do discretionary. everybody is happy they only did 37%. >> in order to get out in the

mandatory part of the budget you have to go in the authorizing committee, go in and change the law. discretionary part is something that congress appropriates for annually. it is getting part of it shrinking. one-sixth of it is non-defense discretionary spending. sixth is defense. interest on the debt and social security and medicare and medicaid, entitlement. mandatory. >> greta: a little more complicated. >> yeah. >> greta: taxes we understand that there is some discussion of compromise. how do you compromise? democrats wanted tax cuts to expire for those making $250,000 and republicans say no. >> right. >> greta: where is the compromise possibility? >> i suppose it could be argued that the compromise would be extending everything for two or three years, along those lines. we'd like to see it extended permanently because we believe the businesses, small businesses if particular need economic certainty. right now they don't have

that. there is so much corn -- concern about washington, and they need certainty and they don't have it. we think it ought to be extented permanently. the democrats would like to extent it for the certain income levels. i think when you've got an economic downturn like we face today, worst thing you can do is raise taxes. it kills jobs. >> greta: the democrats think if you extend it to everyone, the amount of money the treasury will be missing is going to be devastating to our economic, national economic situation. has anyone done a study to see to what extent our economic situation if you take the money that instead of taking money from people making over $250,000 a year, if they reinvest it, has anyone compared the two? >> there are a lot of economic models used to do that analysis you're talking about. most of the economists, the number i saw recently was 18

of the 31 prominent economists have said we need to extend the tax relief. if you want to grow the tax relief and extend jobs. c.b.o. said if you don't extend tax relief it will cost you a point to point-and-a-half of economic growth. that's probably more of the argument for doing this. if you want to grow the economy and expand the economy, ultimately the way we'll get people back to work and the way we'll deal with many of the deficit/debt issues in the country we have to expand the economy. >> sean >> greta: no secret. we have known since 2001 the tax would expire and now we're up against the line. has any democrat called you from the white house or leadership in the last month or two months and said let's talk about this? >> not about that. that conversation with the democrats. i think the rhetoric going in the election -- >> greta: don't you find that appalling? i tell you why. as taxpayer/citizen it's distressing that all of this pressure to have this and the

fighting and juggling and lines in the sand and the discussion about who is going to do what, when everyone in congress and the senate and the white house knew this would happen. >> it wasn't like we didn't know it was coming. we had votes in august, not in august. we weren't in august. but july and september to try to force this issue. democrats didn't want to talk about it. run-up to election and they didn't want a big debate on taxes, particularly this one going to election. it's put off. here we are, we procrastinated. in the 11th hour. all the uncertainty in the economy on what will happen with taxes on january 1 and nothing has been done. >> greta: this is a good year to die. no state taxes. good year to die for your heirs. what do you do about the estate taxes? >> i'd like to see it hitch a ride on the 2001/2003 tax issue. estate tax has to be dealt with. it goes to $1 million exemption and 55% top rate on january 1. think what it does to a farmer

or rancher in south dakota. >> it means the family farm can't stay with the family. >> correct. that is another thing that so many folks out there are looking for. looking for leadership and the congress to say they solve this and provide certainty so people can make plans. >> greta: in the meantime, we run up against the line. >> we do. again, you look at 2001, 2003, there are a number of tax provisions that expire a year ago that haven't been extented. so if you are doing business in this country, you have absolutely no certainty. how can you make any decisions about the future, investment and adding jobs when you don't know what the rules will be? >> greta: will you compromise instead of $250,000 do it to $1 million? >> i don't know why you have to create artificial -- >> greta: the answer is no? >> the answer is no. if you believe the best way to grow jobs and the economy in the country is keep taxes low and allow small businesses which are ecreating two-third and three-quarters of the job in the economy to do that,

then the worst thing you can do is raise taxes on them. if you raise them on the higher income levels is what happens. >> greta: senator, thank you. nice to see you. >> good to be with you. >> greta: not just a lame duck congress we're watching. griff jenkins has his eye on the incoming class. check things out. >> reporter: sunday morning at the la fant plaza, the official hotel where the new members of congress will say. the media is given a pictorial book so we can identify them. what happens first is the members check in at an office set up for them to announce their arrival. we have a room here for the media where we will be doing interviews in there with the members that will talk with us. then the new members will literally after they check in, in that office they will go in the elevator to the second floor and officially get their i.d.s and blackberries, laptops and their packet for the week. we're off to the races. >> what do constituents that put you in office want? >> they want to us quit

spending money. they want to us get people back to work. it's deeper than that. people have felt a complete disconnect from washington, d.c. they no longer see washington, d.c. for themselves. they see it as a separate entity that doesn't listen to them. >> the message i take from the mid-terms is american people want attention focussed on them again. not on parties. they want congress to be focussed on their needs. >> the message is they want the federal government to get off their backs. they want to be taxed left. they are tightening their own belt and managing their own budgets and they expect no less from the federal government. i intend to deliver that promise to them.

>> what are the things you want to start working? >> jobs. it's about the economy around for all americans. especially the seventh congressional district. we have double digit unemployment in most places in the seventh congressional district. it's about job creation and economic development, transportation and infrastructure needs. >> i ran on addressing the debt and spending that we believe has been out of control. when you look at the people in south dakota but across the country, they are expecting results. we intend to deliver. >> i think the american people is looking for the republican party right now to restore confidence and do their confident. if we keep promises that we made, we will be able to restore confidence in congress. we need to restore confidence. >> you still have a democratic senate and a democratic administration in terms of the president. we just have to work with them.

i think we will reach across the aisle to do what we can to do things to benefit the american people. >> we have to remember we weren't put in office because people were enar mored by republicans. we were put in office because people were tired of what they saw. we don't own the majority. we're renting it. we to reearn it in two years. >> i'm an employee. i have to work for people who hired me. what do i do? listen to them and see what i can do to effect the common good. that's not difficult. what makes it difficult is when you add in all the political factors that influence. that's what complicates things. i'll simplify what i do. >> today the new members came here to the capital visitors center where the official orientation began. later in the week, they will be introduced to the house floor, attend a welcome reception and elect leadership and take a class photo. by the week's end they will receive official office assignments and their work will begin the first week of january. >> greta: coming up, you know this is going to go over like

a lead balloon. did you hear what democrat doug schoen is advising president obama? hold on to your seat. did president obama blink in a staring contest with republicans? dick morris moments ago. and sarah palin smashes a record. stay right here. she felt lost... until the combination of three good probiotics in phillips' colon health defended against the bad gas, diarrhea and constipation. ...and? it helped balance her lon. oh, now that's t best part. i love your work. [ female announcer ] phillips' colon health. they've done a great job caring for their teeth. that's why i recommend a rinse like crest pro health complete. it's a more comple way to a better dental check-up. giving you a clean, healthy mouth. new crest pro health complete rinse.

i'd get this tightness in my chest. so i went back to my doctor again. we chose symbicort to help control my asthma symptoms all day and night. [ man ] symbicort improves my lung function, starting within 15 mutes. symbict will not replace a rescue inhaler for sudden symptoms. it is a combination of two medicines and should not be taken more often than prescribed. symbicort contains formoterol. medicines like formoterol increase the risk of death from asthma problems, and children and adolescents mahave an increased risk

of being hospitalized for asthma problems. symbicort is not for people whose asthma is well controlled with a long-term asthma control medicin like inhaled corticosteroids. once your asthma is well controlled, your doctor will decide if you can stop symbicort without loss of control, and prescribe a long-term asthma control medicine. be sure to see your doctor if yoursthma does not improve or gets worse. symbicort is a good choice to help control my asthma all day and night. [ inhales ] [ exhales ] ask yr doctor if symbicort is a good choice for you. [ male announcer ] if you can't afford your medication, astrazeneca may be able to help. >> greta: you knew it would

happen. tonight it is. two democrats going rogue. really rogue. doug schoen and pat worked for presidents and cowrote op ed called "one and done." they tell obama not to run for second term in 2012. why? doug schoen joins us live. doug, why your advice to the president? >> well, we really think he needs to return to the promise of the 2008 campaign, which is to unite red and blue states, liberals, moderates and conservatives. and to focus on the problems of the country, not focus on partisanship, fighting your enemies, flash and burn, scorcher. bring the country together. that is why pat and i wrote the article we did. >> greta: do you blank him for the rank, the democrats versus the republicans in washington? when he ran the president, he ran as they often do as uniters, i'm going to bring the country together and all that jazz. do you blame him for that all

that happened? >> the best point i heard recently is the one you made to senator thune. has the white house reached out to you on taxes to forge a compromise. he said gee, they haven't reached out. you said that angered you as a citizen and most americans feel the same way. he is the one who referred to his opponents as enemies. he said he was going to engage in hand-to-hand combat. that is not the way i think he should govern. i think if he passes on re-election and tries to fulfill the promise and the mandate of 2008, we'll be better off as a country. and as a people. >> greta: what makes the tax issue, though, so profoundly different than any other issue is the fact we knew it was going to expire. tax rates of 2001. had an expiration date of this january. secondly, the democrats controlled the agenda when the tax issue brought to the floor to be discussed.

is there anything else the president could have done and why do you hold him accountable for the fact the parties don't talk? >> i hold both parties accountable. mitch mcconnell made a mistake saying his priority was to make president obama a one-term president. they try to put issue and principle first. the economic problems are the problems internationally, put them first and try to forge a genuine consensus on taxes and something we talked about before. creating private sector jobs. revitalizing our stalled economy. if we focussed on that, we'd be better as a country. that's where we think it needs to happen. >> greta: do you agree it won't happen and agree he will run? >> i don't think anything in politics is locked in sand. we didn't know two years ago

there would be a tea party movement and four years ago that barack obama would be the next president of the united states. never say "never" but we are speaking to a philosophy of governance and an approach to politics and with a he needs to do to unite the country. >> greta: he made a one-term presidency and made a statement. what could any next president do that is different in terms of stopping the grossly divided atmosphere? >> you have to govern with the perspective that it's not who wins and who loses. it's how we benefit the greater good. if we force the compromise on healthcare. if we focus on the private sector job creation or done a deal on taxes earlier. we'd be better off. we had hyperpartisan culture. i blame the democrats and

republicans and i think pat does, too. we fundamentally need a president to stand above politics for us to achief with a we need to as a society. >> greta: doug, thank you. >> thank you so much, greta. >> greta: president obama did blame himself for something. what is it? we tell you. then dick morris goes on the record. plus, another illegal immigration d immigration dust-up. do you think immigrants should get breaks at public universities an colleges? stay tuned. [ female announcer ] fa: the medicine in children's advil® is the #1 pediatrician recommended pain reliever for children. plus, children's advil® brings fever down faster than children's tylenol®. choose children'advil®. relief you can trust. [ exclaims ] ...with...stage presence. ♪ a new phone witholby surround sound speakers. only from at&t. rethink possible.

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>> greta: it's mo secret. two major political parties democrats and republicans are at each other's throats. guess what? the president takes some responsibility. yeerday on air force one, president obama told reporters that during his first two years he focussed obsessively on policy and did not set a

bipartisan tone. he also promised he was going to change his ways moving forward. dick morris joins us live. if you want to check out his website, go dickmorris.com. dick, before we get to the issue of bipartisan, i'm curious on the republican side with the earmarks. is there anything that the republicans can do short of getting rid of the earmarks that is not going to create enormous problem with them, vis-a-vis, tea party activist? >> this is a very important evening, greta. tomorrow morning the republican senate caucus, republicans in the senate, while they are the minority, they still have their caucus and they will hold a vote on banning earmarks. if that passes, no republican on the united states senate, i'm sure lead over to the house will propose any earmarks at all. >> greta: for a period of time? >> bridges of nowhere -- >> greta: moratorium for -- but[ overtalk ] >> greta: is it two years?

they could extend it farther if they want. >> if it passes tomorrow and i think it will, it will go through the government. there are 19 that are undecided. the 19 include mr. john thune who you had on. kyl from arizona, kay bailey hutchison and vitter from louisiana. i have a list of them on dickmorris.com and their phone numbers. there's never been a more important procedural vote before the congress starts than this one. go to the website and look up your senator dickmorris.com and call him and tell him you want him or her to vote against earmarks. this is crucial. huge portion of the deficit,

overspending comes from the earmarks. they're bridges to nowhere. study on what happens when you mix marijuana and morphine, tunnel for turtles, literally projects that are in there. this is a chance to kill them and what john mccain has been pleading for. i hope we pick up the telephone and use it. dickmorris.com. get the list. >> greta: it will be interesting to see if anyone votes to continue the earmark because it probably won't bep popular. >> we have seven now. we said they would. one of them is shocking to me. i campaigned with them. roy blount, the republican congressman senator from missouri. he is voting for earmarks. ridiculous for a republican to do that. >> greta: switch to the other issue. in terms of the president on air force one taking blame for some of the bipartisan rank -- or what he said he focussed more on the policy and not on dealing with the issues of communications i guess is my

shorthand way to say this. is that true or an excuse? >> it's all a put-on, greta. what he has been trying to do and been trying to do since november 3 the day after the election is lay off the blame for his defeat on style not on substance. he just did it again. he said i've been so obsessively focussed on substance i didn't pay attention to the tone in washington. mr. president, it's your substance that got you defeated. it's not your tone. it's not your style. it's healthcare. it's financial regulation. the budget. it's the deficit. it's the stimulus package. it was the substance that got you in trouble. don't worry about the tone. change the substance. >> greta: interesting. a lot of this is laid on fox news, as though fox news has been responsible for this. i've always been curious, fox we like to think that everyone in the country watched fox news and -- we do have a mix

of people who are for things and opposed to people. but the fact is we have about 3 million viewers so there are a lot of people who don't watch fox news who are unhappy with healthcare. that are unhappy with the stimulus program. that is a fact. you know, sort of interesting. how does he turn it around so that he, we've got go years so he's on the winning side? we get unemployment down below 9.6% and that will do it for them? >> don't sell yourself short, greta. at any one moment fox news gets 3 or 4 million viewers. in the course of the day or the week, 35% of the electorate watches fox news several times a week or more. that's an actual survey. it's more than watched tv network news. that's not just fox news. that includes cnn and msnbc but it has a huge impact. the answer to that really is we have two fundamental questions confronting this administration. are we going to bail out the states that are going to

complete for aid or make them solve the problems? are we going to raise taxes or cut spending? those are the two fundamental issues. on those issues, if obama says and does the right stuff he will get re-elected like bill clinton did in 1996. >> greta: the problem for a lot of these things if he does the things that many americans want, it's another way to covertly say i was wrong. it's very hard i think for a lot of politicians to say maybe my idea wasn't the right one. >> bill clinton never really said that. but he certainly did move to the center. he did go with the spending cut and tax cuts that he resisted in the first two years. he was big enough to do it. wonder if obama is. >> greta: we'll see. very interesting in the next few weeks, months and years. dick, thank you. >> thank you, greta. >> greta: next, it looks like the white house is playing favorites. are you one of their favorites? if not, why not? that's minutes away.

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>> greta: is the white house playing favorites? are you a favorite or are you getting the short end of the stick? we report, you decide. healthcare law was supposed to cover everybody. but now health and human services is giving some businesses a pass. h.h.s. is handing out waivers to comply with the rules. why would they do that? we're joined by grasso. good evening. welcome back to washington. >> thank you for having me. >> greta: of the 111 who got waivers does any of those not have a lobbyist? >> you think they have lobbyists and they have

lawyers. they're trying to provide insurance for their employees so they say we're not doing this so the white house waves the white flag. but kathleen sebeliusbe is judge, jury and lord high executioner. >> greta: why do they get waivers? what are they getting the waiver from? >> 1.2 million people covered under these. mcdonald's, red lobster and olive garden but also small companies so they don't have to provide the level of insurance, the high level where the president said there won't be caps on how much insurance. it's since called the myny meds a lot of the fast food places provide. it covered small amount, low

premium but not the sky is the limit. >> greta: they were providing something to employees and the new law said you have to buy more. >> not good enough. >> greta: so they were going to say okay, we'll not do in the pool, throw them in the pool. so the government thought oh, no, we want the people to be in, we don't want them to go in the pool and we'll give them exemption and they don't have to provide coverage that the rest of the nation was getting. >> three states offer the program, because they say it's better than anything. now, the obama administration says we'll give you a one waiver and for 111 companies they have a one-year waiver. >> greta: what happens in a year? >> then they go back and again beg the white house for another waiver for additional year. that is the problem. this is the healthcare patient bill of right. now, they have to get amnesty from the bill of rights and get the exemptions from bill of rights. that is ludicrous. >> there is several aspects to this.

one is the amnesty. but the other thing, too, the whole point of this is everyone will have pretty much the same thing. same deal. now we find out that the ones, the company, good or not a good reason, 111 big companies are getting waivers. they're getting a special deal. it's true that of the 111, they have the lobbyists and lawyers so someone sitting at home with a business with 51 employees, maybe a small business in some community doesn't get this, because he or she can't get the 111 waivers. >> some of these are small companies but there is a new set of regulations to come out. they said we have to offer waivers on that as well. some are labor unions and insurance companies and businesses. across the board it's unfair. unless you have access to the white house, for whatever way you got it, whatever friendships you have there, unless you have that access you won't get away with it. >> greta: what does the white house say to this, do you

think? >> they think it's improving quality -- >> greta: but why they get the waiver. >> it sounds like they want to try to allow people to keep insurance they have. what was the president's original promise. if you have what you like, he said you could keep it. but you but now know 80% of people with small businesses and get insurance through work can't keep what they have unless they have a special friend at the white house to get a waiver. >> greta: thank you, sir. >> thank you. >> greta: speaker pelosi gets backup as we reported, speaker pelosi wants to be the minority leader in the next congress. some democrats are not keen on that idea. however, a group of 31 female house democrats signed a letter supporting pelosi for the job. we go on the record. >> do you support pelosi to be the next minority leader; is that correct? >> i do. >> why? >> you need a strong leader, whether you're in the majority or the minority.

nancy pelosi has been an outstanding speaker. she was effective. we have a diverse caucus. we managed to ecreate probably a variety of folks' views one of the most unified caucuses and in passing legislation, that has been historic. the kind of opportunity it afforded to the public. now we need a strong effective leader again, diverse caucus. that she will head up. she has unique talent in being able to move forward, whether we were in the majority and now in the minority, her talents are even more important. >> greta: you mentioned diverse caucus. indeed you have a diverse caucus. have you managed to -- you managed to herd the cats because it's diverse. however, attribute of leader

is getting the legislation through and making sure you remain in the majority. that didn't happen. reading the american people. now you may have gotten healthcare, but you have now lost your power. >> well, listen, you have 10% up employment in the united state states. you have a public that is angry about that and they have good reason to be angry. lost job, lost healthcare, wages are down. may have had a home foreclosed on and have to maybe tell their kids they can't go to school. it's about their viewing, that what we did with regard to economic policy did not have a direct effect on them. they wablt to see the focus now on jobs and getting the economy right. nancy pelosi can do that. >> isn't that a problem? we have 9.6% unemployment, maybe not as bad as 10%. the idea of the stimulus, manage to marshal through the house of representatives as the speaker, the trend has not

been a good trend. democrats are responsible for the trend since february. would she not been a better leader if she steered to president to a different economic policy or steered her democratic caucus to different economic policy? >> i think what she did was to create the opportunity for an economic policy to move forward. it did not turn the country around in the way that the public was anxious for. i see people every day. they are, there are a number of economists who say we turned the corner. the recession is over. it's not over for the person who doesn't have a job. >> that is my point. blue dog democrats, 60 who lost their seat they might have had a different economic policy than led by nancy pelosi. she is effective dealing with her caucus, but stepping back -- >> very inclusive.

i can't tell you meeting within the caucus over and over. change of consensus. many pieces of legislation because of whether they were moderate or conservative, the legislation was changed. >> is it worth it, though, to lose the house in terms of the majority? >> it's never worth it to lose. but the fact of the matter is there were economic circumstances. led to angry electorate, vis-a-vis, incumbent. they want to set the economy right and they want an economic narrative on how to create jobs and reduce the deficit. >> look at what is coming up after this show on the o'reilly factor. >> greta, is president obama in retreat? and ted koppel goes after me and fox news.

we have look at that tonight on factor. >> greta: that's 11:00 but we are live until the top of the hour. next, should illegal immigrants get division breaks at public policies and universities? don't answer it yet. that's next. and former governor sarah palin makes headlines with five million of her closest friends. stave tuned. it's our honeymoon. but we've parted wa with our old airline credit card that promid flights for 25,000 miles. it was always... [ laughing ] that seat's not happening without a big mileupcharge. a miles upcharge wasn't part of the deal. was i supposed to go without my wife? [ elevator bell dings ] [ grunting ] haha, that was awkward. so we upgraded to the venture card from capital one. we've had it with the games. [ male announcer ] don't pay miles upcharges. don't play games get the flight you want with the venture card at capitalone.com. what's in your wallet? ♪ ♪

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that lets business owners handle payroll on the go. or, like adp, you can dream it and do it. adp lists on nasdaq, the world's most innovative can-do exchange. >> greta: much more on the record ahead but first go to the new york newsroom where we have the other headlines. >> a house panel will resume deliberations tomorrow in the ethics trial of congressman charles rangel who faces 13 count of financial fundraising misconducts. he walked out of the hearing after the panel refused his request for postponement. in new delhi, 51 people are confirmed dead following collapse of a four-story building. another 76 people were injured and police and rescuers are searching debris for survivors. it housed 200 people, mostly

poor families. now checking the market in asia, the nikkei is down. hang sang is down. the dow jones future is down. for more business news, tune in to the fox business network. giving you the power to prosper. now back to "on the record." ♪ >> greta: another illegal immigration dust-up in california. supreme court ruling that illegal immigrants can continue to get in-state tuition breaks at california colleges and universities if they attend california high school for at least three years. lawyer chris coback joins us live. he was on the losing side of the case. good evening, chris. >> good evening. >> greta: well, you lost, i guess there is no wiggle room. you lost unanimously. >> yeah, it was a very bad decision. i'm surprised it was unanimous, though. the supreme court of california seemed determined

to find some way to allow the state to continue giving in-state tuition benefits to illegal aliens. in so doing, they ignored a critical supreme court precedent and ignored the central issues of the case. we're hopeful that if the supreme court of the united states takes it, it will be easy to overturn the decision. >> greta: the justice in california is one of the most conservative justices on the california supreme court? >> conservative by california standards i suppose you could say. >> greta: now, this law, i think you tried to challenge one as well in kansas; is that true? >> yeah. there was a similar lawsuit in kansas brought in federal court. in federal court, the rules of standing are much stricter. the plaintiffs did not have standing in federal court. this was brought in state court where they had standing.

>> why did you bring it in state court in kansas? i don't want to get too far afield but why that? >> the issue at this point back in 2004 hadn't been tested so there was a reasonable argument that the federal court might grant standing but of course they didn't. >> greta: what did the california supreme court say ruling against you? >> basically, what the california supreme court did was it said that the federal law doesn't stop california from doing this. in 1996, congress passed a federal statute that said no state can give in-state tuition to illegal aliens unless they want to give in-state tuition to every student coming to the state. interesting thing they were looking at the california universities that were granting in-state tuition unilaterally and congress wanted to stop states like california. here we are 14 years later and the california gutted the federal statute designed to

stop what california was doing, giving the in-state tuition rate to illegal aliens. >> greta: who are your clients? out of state opportunities who want in-state tuition as well? >> they're out of state students who want to be treated equally under federal law. they argue look, one of the privileges and immunities of u.s. citizenship under the 14th amendment is not treated worse than alien, illegal alien by a government of the united states. they argue look, the federal law says if you are going to give in-state tuition to any illegal alien in your state, you have to give it to every u.s. citizen. why are we being charged three or four times as much to go to college if we're citizens? >> greta: i understand what the california supreme court says this is not, this is a question not necessarily of residency but whether you attended three years of high school in california, that's the way the california law is written and why it's not

unconstitutional. >> on the statute passed in '96 says no state can give post secondary benefit on base of residence in the state, fancy way to say in-state tuition. california supreme court said ah-ha. look at the word "residence." california statute doesn't use residence so maybe they found a loophole. the reason it's a bad decision they created a loophole that swallows the federal statute. any state wishing to place the gains can say we'll give the in-state tuition to our illegal aliens but we won't use the word residence. we'll say if you attended high school in the state though you resided in the state attending high school. a poorly drafted opinion that the california supreme court has issued today. the key is will the supreme court take it? i'm confident we'll prevail if they do. >> greta: thank you. best of the rest. sarah palin was the first woman on the republican presidential ticket.

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>> greta: the best of the rest. sarah palin breaks a record. 5 billion tuned in to her launch on tlc. the lady of the view tuned in. >> it was both breath-taking and as real as you get at the same time. >> right. >> you see sarah at home and you realize he is in alaska and in the wilderness but also like many mom dealing with kids with attitudes. can i show you a clip? check in out. >> today we'll have a blast. after i get my work done we're hearing the girls to bear country for salmon fishing. >> hold on. >> what else? >> what else? four kids in the house calling me mom and the one way she can put her foot down and get me to pay attention to what she is saying is call me "sarah." >> willow?

c'mon! this gate, is not just for trig. it's for no boys go upstairs. she will be downstairs in a minute. >> mom. >> you can text her out there. [ laughter ] i like that. >> most moms can appreciate it on one level or another. >> greta: that time again. yes, new addition to the "on the record" stupid criminal file. this one is a doozie! a woman named bonnie usher has been arrested charged with armed robbery. how did she get caught? this is unbelievably stupid. after allegedly robbing a rite aid pharmacy, bonnie usher got in a car with a vanity license plate, b-usher. yes, the name was literally written on the get-away car. very bad move. what is wrong with some people? listen to this. two 13-year-old entrepreneurs run into a business roadblock. police shut down the bake

sale. they were selling cup kaiks and brownies in a new york park when a local counman called the police on the boys saying they were operating without a license. we're serious! mr. councilman, lighten up. normally you think alligator would win a fight with a cat, wouldn't you? not this feline! >> unbelievable! >> oh, my god! >> whoa! >> yes, the youtube video is going viral. shows a courageous cat winning a stand-out with not one but two alligators. do not mess with that cat! we want to know who are casually watching as the fight took place. as an aside, you may have read the good news on greta wire. my cat bill just came home after disappearing for a week. doubtful he was taking on

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my kids say i speak a different language. but i love math and math and science develop new ideas. we've used hydrogen in our plants for decades. the old hydrogen units were veryarge. recently, we've been able to reduce that. then our scientists said "what if we could make it small enough to produce and use hydrogen right on board a car, as part of a hydrogen system." this could significantly reduce emissions and increase fuel economy by as much as 80%. >> greta: 11:00 is almost here, flash studio lights. it's time. last call. the president's trip overseas was not without tension. >> one awkward moment when president obama twont pay for lunch, chinese president said your money is no good here.