>> greta: cardinal designate is not happy. sarah palin is here to talk about the contraception controversy. plus an eerie new look inside houston's hotel bathroom. >> right now. congressman paul ryan, with budget, he calls it a gimmick and recipe for debt crisis. he is not playing words. paul ryan has a plan. >> good on to be back with you. >> let's start with the president's budget. what is wrong with it in your opinion? >> what is wrong with it. what it doesn't do. it doesn't fix our problem. he doesn't pretend to actually

fix our fiscal problem. instead i would call it american drowning in debt. when you strip away all the economy gimmicks and all the counting tricks. take all that way it doesn't come close to do what who he says it does. it reduces the debt but it doesn't do it. it increases spending net over $1.5 trillion, increases taxes by $1.9 trillion and $400 billion over the entire ten-year period. so instead of increasing our debt by 78%, he is increasing debt by 76%. $11 trillion out of this budget. >> greta: the president submits a budget. we get a projections for fiscal year for 2013. we set up numbers that is going to happen the next nine years after that.

he is not taking into account another budget is going to be set with another direction whether up or down whether he is president. this is sort of the stream of numbers we see out in the future are completely phony. >> they are projections. you have to project where government is going in the future so you set your spending policies. you can tell whether medicare is going bankrupt which it is according to 2021. so the future does matter, but it's also the trajectory of the policies. it shows the path the president has put us on the policy he is calling for. since 61% of the budget is on autopilot, debt is going on autopilot. president is doing nothing about it. he is chasing higher spending with higher taxes. he is doing nothing to address the drivers of our debt. we will have a debt crisis in this country. that is going to happen.

he knows this. he knows we have a debt crisis in this country. what is troubling by those of us who care about our country and economy and people not being lied to with promises of benefits, people counting on medicare and social security. if we don't do something to fix the programs, then those people will be hurt the first. >> greta: the whole system, not to be disrespectful to both sides of the aisle, but is phony to begin with. harry reid says he has no intention to vote on it, all these books and stacks and stacks of books, all this work that the administration did putting together this budget making these books and making these projections and making these numbers is a silly exercise. senator harry reid said there will be no vote on it. it's obscene.

>> the law says the president has to produce this. budget law says by a week ago yesterday must produce. >> greta: why doesn't he get together with his colleague, a democrat and united states senate and have a vote up or down. >> the law also says the house must produce a budget and senate must produce a budget by april 15th. we passed our budget on time. we're going pass our budget on time. "a" we think it's moral obligation but legal obligation. >> greta: there is no recourse? >> senator reid is saying he will not bring up the budget. he won't pass a budget this year as well. >> greta: why not? >> because i don't think they want to show you just the kind of tax increases this for the government they have built. i don't think they are willing to show the country how much government will cost the country

because they aren't willing to cut spending. president is increasing spending in a debt crisis. >> greta: but coming up with somethinging, harry reid is stopping it. >> four years of trillion dollar deficits. >> greta: for some reason, it makes me crazy, that senator harry reid won't consider this and put this up for a vote. the administration by law has to go through this. it's never going to see the light of day. >> that's right. >> greta: that is appalling. >> it's also against the law. senator reid is saying in the midst of chronic deficits and on the eve of the debt crisis, elected representatives of united states senate has decided not to governor not just this year but the last two years, as well.

it fuels uncertainty. it gives the country the sense that the government is not working. they are not proposing alternatives. we put offering table and passed plan and we addressed the drivers of our debt. to lift this and get it back to the path of prosperity and to save these programs so we can rely on these guarantees, but you'll see all the negative ads being run. we believe we have a moral obligation to put solutions on the table. we're going to give the country a choice. they will see what we are offering as a choice of a different future for the country than the one the president has assigned. >> greta: give me four points, the differences? >> our plan pays off the debt. >> greta: in order to pay off debt, somebody has to get hurt. so he is not going to cut

spending. >> so we proposed to -- but i would argue the hurt comes from kicking the can down the road. it's the austerity you have to impose just ask the greeks what it looks like. if we can reform these programs now in a gradual way. we don't affect medicare benefits but reform this program for the next generation so that the benefits can be counted on. we're saying gradual changes now to prevent a debt crisis from getting out of control with economic tax reform versus president's plan by procrastinating, you pull the rug out from people after they are retired and crank of taxes on young people. so the pain comes from doing nothing and then having a violent death crisis on your

doorstep. >> greta: what is wrong with taking a little of their revenue tax increase. about 1% of the population, those that make $250,000 a year and adding to it the spending cuts so we get faster to the point to pull out of crisis. i realize if people are taxed more the economy won't move as quickly. let's say you tax the top half a percent? >> the tax rate is above 250. >> greta: above a million? >> the numbers off of 250, that gives you 6% of the president's increases. >> greta: off set by -- if you take that amount that you are talking about that the president wants, if you take that amount and tax those people is that going to inhibit the receiving up and growth?

>> my second point the tax increases he is proposing is fuel more spending but more to the point. here is thing. eight out of ten businesses in america, they have filed their taxes individuals not as corporations. the president is proposing that their tax rating to 44.8% in 2013. we'll be taxing successful businesses where half of our jobs come from, you and i are from wisconsin, meaning lake superior where we come from, canadians are dropping their taxes down to 15%. china taxes their businesses at 25%, barack obama wants to tax a successful small business at 45% in a year. you don't grow the economy by doing that. you are don't grow the economy by penalize go job creators and taxing almost twice as much as

foreign competitors and tax increases are to fuel more spending. >> greta: when you said the president knows better. taking advantage essentially of the discounts we're going to have, like we're not going to be paying for the war, are you saying that he has a different ideology on how to resolve the deficits, the debt and where the direction the economy is going? are you saying he is being deceitful? >> he is not even trying to fix this problem. that is what is so disappointing. >> greta: why wouldn't he try? >> i don't know. he gave us the fiscal commission he disavowed that. i said here is how i would do things differently. the president outsourced

disavowed their findings here is how we'll do it this way. he has yet to put a solution on table to fix this problem. four budgets, four trillion dollar deficits, more debt added. the point i'm saying, i'm not saying mathematical thing and literally chosen not to give a solution. >> greta: he is not doing it. harry reid he is m.i.a.. what are we paying their salaries for when we have no budget to operate from? >> and problem is a fiscal crisis. you don't address a fiscal crisis until your government budgets. we're still living the 2009 budget that was passed by senator reid and pelosi. that is the last one that was

passed. what we're saying we need to make choices in this country. sooner we tackle these problems the better we'll be. >> greta: how can you do it if everybody is not participating? congressman, thank you, good luck. you asked for the job, right? straight ahead, president obama getting he had from cardinal from them think dolan, it has to do with contraceptive accommodation and sarah palin is here. that is next. also new photos from inside the hotel room where whitney houston died. live report minutes away. plus, israel and iran could be close to the breaking point. israel accusing them of three bombings attacks in two days. some fear that iran may be planning attacks on israel right

here on u.s. soil. ambassador john bolton goes on

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>> greta: trouble growing tonight for president obama's contraception rule. top u.s. catholic bishop vowing

to fight the mandate as well as the court. archbishop timothy speaking from rome where he will be elevated to cardinal, rejecting the so-called compromise. president said religious groups wouldn't have to pay birth control for workers, under the latest idea. insurance companies would have to provide it themselves free of charge. sarah palin khions us. >> good evening, how are you? >> very well. that is led balloon, the accommodation with the catholic church, why? >> i think they are realizing it's obamacare. the stripping of our liberties and choices with this takeover about one suggested of our economy and more power for the bishop by not saying this compromise is really no compromise. the controversy that ensued was

based upon the fact this is an assault on religious liberties. it's government telling a faith based institution what it must provide, though it does violated the conscience of that institution. this bishop is saying it's not going to work. >> greta: it's interesting because president obama is hoping that insurance companies would make the payments and not the catholic church. it seems to me that many of the catholic hospitals are self-insured so they would have pay for it themselves. i'm so stunned how poorly this was thought out by the obama administration. they didn't think one step ahead. >> very poor politics they would choose such a battle. to pick a fight with faith filled americans. we will fight as the father has said earlier on the hannity show freedom of religion. for the rights that are protected by our united states

constitution. this is an unamerican act by the president. anything that would violate within the united states constitution is unamerican. barack obama needs to rethink what he has just done to the people of america. we are rising off and we're not going to back off and say okay, it is all right that such a violation of conscience. such a violation of those things that our founders fought and died for, we're going sit back and let it happen to us. not this time. >> greta: and political ramifications to the election went back to election of 2008 which was interesting in terms of the swing states. florida, nevada, iowa, michigan all important states in the election, more than a quarter of the voters are catholic. it would be interesting to see to what extent. many of catholics use

contraception but it will be interesting to see how much influence the catholic institution will have? >> it will be interesting to see what the outcome will be. nine months from now when the general election takes place, this is going to come down as so many examples will surface between now and the november election will be surfacing the examples of what this election is all about. its party of government and party of freedom that will battle it out. who will win. who will win. big party of government or big party of freedom loving americans. >> greta: what do you think will happen, let's say by june when the supreme court takes the term and they will have made a

decision on healthcare. if it's declared constitutional or unconstitutional, both ways the impact for president obama in november? >> if it's declared constitutional, we still have remedy. that is replacing obama at ballot box, getting somebody in there that understands our constitution and understands the free market and understands there are solutions that could be market based and patient centered. the solution is replacing our president with a free market, pro capitalist ideas on how to solve the problem. if it's deemed unconstitutional, of course, that solves much of the problem. it wouldn't surprise me that his czars, his administration try to get around whatever supreme court ruling. they will still try to ram it down our throat. that is how we got today.

you start peeling back the layers of onion and see what is in it and more americans will rise up and say, no, we're not going to stand for this. very interest interested in what the ruling the supreme court will be, but politically speaking more and more people will start realizing we got taken for a ride on this one. how do you think it will fuel it in an unusual way, people will be energized to try to repair what should be repaired. let me ask you another question. your twitter account and maybe you are, you gave a show of alan dershowitz. >> yes, being very bold and non-partisan with quite a few positions he has taken. he defended me and stuck his neck out when he didn't have to

gabrielle giffords shooting issue where i and lots of conservatives were being blamed for that. he spoke up about that. i followed him closely in his career. especially of late when he has chimed in on some of the issues and wanted to re-tweet one of the things he has said. >> one of the things he is asking, he thinks the democratic party should back away, from media matters that organization that has tax exempt status and one of their activities is target on fox news, do something about it. which brings it out of the nonprofit area and into something much different. it's going to be interesting to watch to see whether media matters is going to lose its tax deductible status? >> regardless of the tax exempt status, alan, what the professor was getting at, too, was this

abuse of the freedom of the press where media matters. so obviously abuses and lying about organizations and individuals. then reporting that as fact. i believe that the professor was calling them on the carpet. trying to hold the press accountable so we don't squander what it is we have inherited and given by others that have fought and died in our constitution. >> greta: it's important, to get our facts right. this could be an interesting look at media matters to see whether or not they survive this. maybe they will, maybe they won't. all right. now turning to the santorum surge. what do you make of that? >> i think it is indicative still of g.o.p. and independent voters not being convinced that

any one candidate has all the solutions. we spend so much time for inside baseball stuff, who is up or down in the race. when we start debating on the ideas on how to get all americans up instead of 46 million americans have been in poverty. 13 million americans not being able to find work. government dependency increasing 23%. what are we going to do about it? we have to hear some of the candidates, what their ideas are. because none of the candidates have articulated yet those things that are resonating with us to convince us that they are the freedom loving pro free market -- pro-american traditions that built this country. we haven't heard that aggressive debate focused on that yet. we're still trying to decide who is it going to be.

it allows one candidate to rise one week and another candidate to rise the next week. thank you so much. >> greta: we have new information about whitney houston's death. a live report from houston's hometown. also steamy hot news in the g.o.p. race, senator rick santorum tied with mitt romney. new question is emerging. is there a shift in the ♪ [ kareem ] i was fascinated by balsa wood airplanes since i was a kid. [ mike ] i always wondered how did an airplane get in the air. at ge aviation, we build jet engines. we lift people up off the ground to 35 thousand feet. these engines are built by hand with very precise assembly techniques. [ mike ] it's gonna fly people around the world. safely and better than it's ever done before. it would be a real treat to hear this monster fire up. [ jaronda ] i think a lot of people, when they look at a jet engine, they see a big hunk of metal.

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>> greta: big question about the prescription drugs found in whitney houston's hotel room. who prescribed them and what role did they play in her death. private funeral is going to be held in new jersey church where whitney grew up. what is the latest on this funeral? >> reporter: this is new hope baptist church. this is where whitney learned how to sing and this is where she had will be buried on saturday. there was some upset in the neighborhood, it's invitation and going to be private funeral. closest people pastor is going to put up screens around the church. but as of now it's private and invitation only that is going to

change. in the meantime, there are also questions about the investigation. apparently investigators are looking very closely at prescription drugs that were found in whitney houston's hotel room. number one, what was the quantity of drugs, number two, perhaps who was prescribing them. was it one doctor, multiple doctors. we should make it clear coroner has not determined the cause of death as of yet. it's not clear whether it was about prescription drugs bit appears where the investigation is focusing right now. >> greta: is there any question about her behavior in the weeks leading up to this? had she gone -- i know she had treatment for addiction. had she flipped. was she drinking and doing drugs in any quantity? >> as you know, in these cases, you have two polar opposite sides. her friend kelly price said she was dancing on stage.

kelly price said she was fine s she was not intoxicated in any way. there are reports that one of her on and off boyfriends as recently few weeks ago she was absolutely behaving erratically. she was boozing and she was taking prescription drugs. family is pushing hard back and claiming in recent time she was clean. once again, it's a back and forth. i have to tell you, when you look at some of those pictures thursday night, you have to wonder what was her state. >> greta: bathtub photo tells us what? >> it looks like, there is famous that has oils she may have put on her body. that wouldn't tell you anything. you see the towel in there and few items that might have been holding her air.

i don't know if they can determine anything out of that. what may be more instructive is other pictures of the room that show some champagne. we know there was prescription drugs and perha the combination of xanax and alcohol could have allowed her to pass out and go under the water. but a lot of people are saying, cautioning that these things are very hard to determine. it's not like csi you take the blood and put it into a machine and instantly you know how she died. it could take a while. >> greta: to the rollercoaster race, santorum and romney tied. rick santorum has showed so much momentum it could mean the republican party is shifting to the right. >> happy valentine's day. >> greta: thank you very much. republican party, voters

shifting to the right? >> i don't think so. i think it's a matter of conservative principle. you just heard about paul ryan. where the deficit is going. i think conservative principles as far as our economy is concerned. they are america's principles. i think whether you are republican, democratic, independent, we can all agree that the deficit and this garbage that the president delivered on monday doesn't do the trick. i think we're going lose america unless we get serious. my point is that these candidates, all of them have addressed these concerns. i think they are speaking directly to our base. i think at different times in the campaign, different candidates have appealed the most to our base. it's a matter of the fact it's early. four states that have awarded delegates. >> greta: i'm surprised, with all the republican enthusiasm that i hear the candidates talk

about, it doesn't seem like the number of voters going to the polls, going to the caucuses is flat than last time around. >> it's a lot different than last time around. you had record turnout in iowa, in 10 percent less than in florida but last time, you the rudy guliani last stand in florida. then we went out to nevada. romney won. think we can say he won fairly easily. >> greta: wouldn't you expect if the republican party were enthusiastic this time they would be out in droves. where is everybody? >> guest: once i think you put obama on the ballot, think we're going to have less people voting in 2012 than in 2008.

i think if you look at the real detail on the ground, which is voter registration in iowa, south carolina and florida, servicing up. voter gap between republicans and democrats has shrunk. advantage that barack obama has shrunk and been eliminated in all those states. it's shrinking in nevada, as well. all of those advantages, the organizational advantage, registration advantage that obama has had, we've shown and documented and not disputable, those advantages have shrunk for the democrats. >> greta: governor romney the polls show that rick santorum is ahead, michigan being his home state and father was the governor there. michigan is a little moderate and senator santorum, he is a conservative. why do you think of that poll? >> both these candidates has done a good job of getting their

message out. rick santorum has done a good job. >> greta: romney is not doing well if he a losing in polls? >> i don't think there is rejection of one or another. i like a hamburger but i don't want the tuna salad. i don't think it's overreport. if the fact we go back four years ago, john mccain was not the presumptive nominee until the middle of march. what is going on. it's the middle of february. >> do you like the apportion or winner take all? >> i think it's a game of momentum. colorado, minnesota, maine, they didn't award a single delegate. so what i believe it's a combination of the two. obviously delegates are the name of the game. you can't deny the fact that

momentum matters. think both of them together makes a difference. it's early and we're going a referendum if barack obama fulfilled his promises. the debt proposing $1.3 trillion and i think americans know it. >> coming up, israel is vowing revenge. ambassador john bolton goes on the record. and john mccain taking on a new career. is it fast? it's got 10 speeds, my friend. ♪ is it fast? it's got a lightning bolt on it, doesn't it? ♪ is it fast? i don't even know ift's street legal. ♪ is it safe? oh ya, it's a volkswagen. [ male announcer ] the security of a jetta, one of nine volkswagen models named a 2012 iihs top safety pick.

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>> from america's news headquarters, i'm ainsley earhardt. an israeli ambassador says bombs discovered in thailand are similar to those used in botched attacks against israeli diplomats in india and in georgia. the news comes one day after three explosions shook a bangkok residential neighborhood. the blast led thai place to two iranian men and a sfash of

explosives in a house. israel blames iran and hezbollah. but iran deny embassy involvement. diagramming testimony in the murder trial of a former university of virm virge lacrosse player accused of killing his ex-girlfriend. a coroner testifying that 22-year-old yardly died from a heart attack be, caused by blunt force traum a. george huguely is accused of killing her back in may of 2010. i'm ainsley earhardt. now back to "on the record." thanks for watching fox. and have a good morning. >> greta: you know something is really fishy, three bombings takes in two days, israel says they are behind them. yesterday, it was thailand and there were several explosions near the israeli embassy.

police say they kept two suspects but this just isn't israel's problem will they say the stability of the world is in danger. how worried should we be? john bolton joins us. good evening ambassador. how concerned should we be? is this a random set of violence and it's over or is this just the beginning. it's hard to believe this is anything other than coordinated decision by tehran to go after israeli diplomats. it makes no sense frankly from even's point of view at this stage given all these attempts have apparently failed. the winner of the 2012 stupidity prize can retire the award is for iran to engage in assassination attempt on the soil of india, a country in critically purchasing iranian oil and breaking the sanctions. why anybody in tehran that was a good idea is beyond me.

i think israel has made it clear they are not going to sit back and let it happen. >> greta: and why would iran do that is in the jerusalem post is posting about that. it says that iran said that israel launched the attacks against its own embassies in in order to tarnish ties host countries meaning india. yain iran is saying that -- >> this is something that iran had a number of things was doing to string out negotiations, iaea inspectors are cutting back. it cuts their efforts to buy time. >> greta: what is the motive? i understand that mahmoud ahmadinejad wants to wipe israel off the map. i know that they got the squeeze for the sanctions from many

countries. why this sort -- is this a pay back because two iranians why assassinated. is this payback? >> the propensity for them to engage in terrorism is nothing new where the obama administration got indictments against the revolutionary guards for conspiring to kill the saudi arabia ambassador. but just from a tactical point of view i don't follow what they think going to get from in. it draws their attention for support for terrorism when they are preoccupied with a civil yar in syria and pressure on them economically. >> greta: if you were the advisor and prime minister netanyahu what would you advise him to do about iran right now? >> to attack their nuclear

weapons installations, their facilities, enrichment facility and not to waste any time. i would have done this years ago. there is much we don't know about that nuclear program. every day goes by military option gets closer and closer to nuclear weapons. >> what would happen if israel attacked iran tonight. what happens with hezbollah and some of the countries neighboring countries that have been sympathetic to israel? >> the iranian response is impossible to predict. most likely outcome they would unleash hezbollah and hamas to target israeli civilian populations. this is such a difficult risky proposition for the israelis. i don't think the iranians would take a retaliatory step that would cross us directly but you can't rule it out.

frankly the other countries the arab states, they don't want them to have nuclear weapons any more than israel does. they would be delighted for israel to take the step to stop iran that they can. >> greta: so it would be escalated war between hezbollah and hamas versus israel, they would be locked in new war with civilian population getting hit every day? >> i think that is a risk. that is certainly one reason this terribly difficult decision. if you don't like iran's behavior now, assassinating diplomats and you don't like the idea them unleashing hezbollah to rocket innocent civilians, just imagine all of this once they g nuclear weapons. the choice is a world after an israeli strike compared to where iran has nuclear weapons. >> greta: straight ahead.

last place you would expect something funny in the united states senate. now who does it involve? senator lindsay graham. hang on to your seat for this one. is herman cain headed to the dance floor? you have to hea

>> i'm going to have lunch with the vice-president of china in a few minutes. so what do you want me to tell him? >> happy valentine's day. >> okay, i'll do that. >> no word whether senator graham passed along the valentine's day wishes. remember congressman tom delay with the very fancy red pants, dancing to "wild thing"? yes, his dancing was wild. who's next, could it be herman cain? he was invited to appear on "dancing with the stars" and turned them down. he said he can't dance to an eight count. he can only dance in a nine count. now, we think that is a reference to his 9-9-9 tax plan.

a pennsylvania judge arrives on the wrong side of the law for dismissing her own parking tickets. she was summoned by the court for not paying the tickets. instead of paying the fine, she allegedly logged onto the court computers and dismissed the tickets herself. she is facing numerous charges and has been removed from the bench. this may be a warmup for lennon's olympic games, england's rabbit-jumping contest. hundreds turned out. about a dozen athletic rabbits turned out. but this year's prize goes to a two-year-old swedish bunny who completed the course in just 11 seconds. there you have it. the best of the rest. coming up, your last call and one more quick round before we turn down the lights. lady gaga has a dress with a

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>> greta: 11:00 is almost here, flash studio lights it's time for last call. now, we've seen on stage exorcisms and lots of surprises from big music stars lately. here is jay leno. >> and what was that? she is coming under fire for simulating an exorcism. what is going on? do you ever think you'd see the day when lady gaga would be the shy, quiet one? >> greta: that is your last call. thanks for being with us tonight. go to gretawire.com right now and i want to you post about tonight's show. we had former governor sara palin