it comes to surprise to business owners when they are working 50 hours a week trying to build a business, we recognize that government provides infrastructure but by and large the president doesn't understand the crucial role of entrepreneurial role of leadership. if you think about it. that is the problem with this presidency. he has failed to lead on the problems. he doesn't respect the private sector and doesn't respect businesses. >> greta: he may want a do-over and i'm trying to look at it from different perspectives. i'm wondering, i wonder if he meant there was a great teacher in your life, looking sort of saying government is responsible to help i get where you are but we have mentors in life, people that helped us along. the one person that gave you the chance.

the way it's taken by many that he meant the government. >> that is positive construction on the statements. i think it's simply revealing. he really does believe that all growth starts with government. $800 billion stimulus. it doesn't have didn't buy any infrastructure it paid for government workers. so that is why the $5.3 trillion that he has increased our national debt really has resulted in no economic growth, no long term self-sustaining jobs because it's total lack of understanding about what made america great. what drives the economy. >> greta: do you think he thinks the stimulus is roaring success? >> no, because he doesn't mention it at all. he refuses to run on his record. that is why he is putting the small ball and trying to divide americans. he has no record to run on other than a record of accumulating

debt. does he talk did the healthcare law. i know the supreme court handed him the victory. that lab huge defeat for our budget and healthcare system and for freedom if that is implemented. he doesn't talk about it. that is supposedly one of his great accomplishments. >> greta: looking what is happening in washington, what would scare you in running your company and make you feel optimistic? >> it's the young men and women among the military. they are finest. >> greta: i mean in business? >> if you look at $5.3 trillion that exceeds the size of our economy. business people understand what that is going to do. that eventually when you borrow that much money you will have to tax people. or if you don't tax people inflation is going to take off. it's so uncertain and certainty is required to make investment

decisions. this president doesn't understand. we've got to return confidence. my suggestion, we need to do it right now because the political season, pass a continuing resolution get it past the inauguration day. we should definitely extend all the current tax rates, institute through 2013 so businesses have that level of certainty moving forward. if we let the tax rates increase that is about $500 billion hit in the economy. that would be body blow and it's irresponsible to not be addressing that now. >> greta: do you think romney this controversy obtain on the offensive and is handling in way that you would not recommend? >> it's members of the media that are pushing the story and obama administration. again, that is part of the games they are playing to deflect the attention away from lack of job

creation, 41 straight months of unemployment over 8%. if you pass the stimulus bill, they said unemployment would never go above 8%. >> in the swing states, he has unemployment below the national average in several swing states. >> talking about bain. i never hear it because i travel around wisconsin. nobody talks about bain or governor romney's taxes. what they are concerned about the level of debt. >> greta: media is talking about it more than anything. >> i really think so. >> greta: nice to see you, sir. now to mitch mcconnell warning the democrats not to be playing russian roulette. we spoke to him a short time ago. good to see you. >> greta: looks like the okay corral over these taxes, she wants all the tax cuts expire

and republicans are raising taxes for everybody. >> look, this really ought to be about the economy. we have a fiscal cliff coming at the end of the year. if everybody taxes go up and the sequester kicks in you are going to have a major recession. so we ought to quit playing games with this and settle the country down and step one would be say let's extend the current tax rates for one more year. during that year do whatever on bipartisan basis is says what they want to do and tax reform. it would take about year. secondly we need to sit down if we want to turn off the sequester, thousand pay for it. we had a lot discussions how to pay for these kinds of things. they are still on the table. we have enough uncertainty going on with 40 months of unemployment above 8%. >> greta: both parties,

democrats have the problem according what they propose, president proposes where taxes go up for everybody over $150,000. that means the government financed for 8 days. they need to tell the american people why the eight days offsets any stluts effect of using that money for business. republicans on the other hand need to explain why the people very wealthy may not need tax cuts. why they are so inspired to use tax cuts to create more jobs? >> you made the point about the president's proposal. it doesn't do anything for deficit reduction, pay for the government for four or five days. it's not a serious proposal. it's all about class warfare. our point is, when the president says he is going to raise taxes on people making over $250,000 a year, in fact hits over a million, small businesses that don't pay taxes as corporations, they pay taxes as individuals.

>> greta: money goes to them personally? >> they are corporations organized in such a way, that they pay taxes at the individual rate. that is some of our most successful small businesses in america. it's 53% of small business income and 25% of the work force. here we are going after the biggest job creators small businesses under the gies of raising taxes on rich people. it would be bad for the economy. we ought to use that year to rationalize the tax code. corporate tax rates are the highest of any country in the world. >> greta: other side is that lots of american people believe that washington really is going to reform the tax code. it has had many opportunities. it hasn't been done. if you do the tax cut for one

more year, it isn't the stability that business operators need in order to make capital investment? >> comprehensive tax reform is something that details and republicans agree we ought to do it's just you can't do it in a couple months. it takes a year to work through it. reagan and tip o'neill did it in the 80s. it's time to do it again. this is thing we agree on, but you can't do it on the back of an envelope over a couple of months. >> greta: who is going to blink first. this is really a showdown. either the republicans going to blink first or democrats. democrats are drawing a line in the sand, either republicans agree or we'll let all the taxes go up? >> i don't think playing russian roulette with the american economy is smart. we need to be responsible. everybody knows what we need to do, we need not to raise anybody's taxes, particularly not raise taxes on almost a

million of our most important and effective small businesses. that would settle us down in terms of the fear that rates are going up. then sit down and talk about if we want to turn the sequester off, there are ways to pay for that. let's do it as responsible adults and not play russian roulette. >> greta: can we get it done before the election. the american business people, whether you raise the taxes or not. they are sitting on the sidelines trying to figure out what to do. every month as we watch what goes by, they are apprehensive about making decisions. >> i think the house will approve extending the current tax rates. we want to have that vote in the senate. i know there are at least six to eight democrats in the senate they don't agree 250 over is rich. in fact they are having an

internal debate over what is rich. some people say 250, some say 500. maybe we should extend the tax rates for another year and we're going to do something. we're going to go through comprehensive tax reform again because we're in an uncompetitive situation with a corporate tax rate with the highest in the world. >> greta: and disclose act. your thoughts on the act? >> latest absurdity. here they have managed to come up with a bill that opposed everybody from the aclu to the nra. it has broad-based opposition. it's designed by our democratic friends to try to punish people who are supportive of republicans and advantage their big else ally the labor unions which the "wall street journal" has spent over $4 billion in money on campaigns over the last

six or eight years. so it's kind of jerry rigged proposal to give the information they need to go after political adversaries. they have been doing that you through the sec and white house itself that was floating a memorandum they were going to send out to all the government contractors telling them in effect you better disclose, i am playing being, you won't be able to do business with the government. it's outrageous and defeated tonight and probably make us vote on it again and it will be defeated tomorrow. >> greta: is it correct that republicans see it as the democrats wanting transparency as to republican contributers but not the democratic contributors. >> that is basically, they want to have a carve out for groups supporting democrats so it

doesn't apply to them and only apply to groups that is more likely to support republicans. >> greta: if it was across the board would you be in favor of it? >> this is small group that is involved in the political discussion. i think it's an interesting debate as to whether or not so-called if they go down this path, it's going to cover a lot of people. the supreme court back in 1958, naacp versus the state of alabama were trying to get their hands on the donor list and supreme court said no. that is an interesting debate to have. most political contributions are already disclosed, those to candidates, those to parties and those to super pacs that support the presidential candidates. we know who is contributing. >> greta: senator, thank you. >> presidential campaign trail getting nasty really fast. president obama says we won't be

apologizing. he responded to questions about attacks on mitt romney's on bain capital in a brutal accusation a deputy campaign manager said governor romney may have committed a felony with his sec filing. romney campaign demanded an apology but it doesn't look like they are going to get one. >> there will be an apology? >> no. the president has said no apology. stephanie said there is going to be no apology. they are quite pleased how the debate is going. >> greta: are they right in the facts they assert about the sec? >> my reading of it having look at the issue is no but it's complicated. >> greta: if it's no, then their failure to apologize speaks loudly. they are wrong about the facts? >> they are not going to apologize because they are pleased we have been talking

about bain capital for the last week. >> greta: are they pleased, if you are right that the facts are wrong and they are wrong suggesting it is a felony, how could they be pleased with themselves if they are wrong? >> stephanie cutter says its felony or he is lying to the american people. he filed documents that said he was in charge of bain capital. you get into this whole issue because there were deals they did between 1999 and 2002 that in retrospect aren't something you might boast about on the presidential campaign trail because of outsourcing and that sorted are the of thing. >> greta: let's say the felon comment over the line? >> my personal opinion? it's rather aggressive for a deputy manager. >> greta: was he mistaken on is

stephanie cutter right? >> this is an issue that is so complicated that different people who are coming at it honestly do have different opinions. i can't get into cutter's heart and whether she thinks it's true or false. they have a different view of it than i do. >> greta: what difference does it make, if he is correct or mistaken about when he got in or out of bain? is it something that happened that is significant? >> i think that is a great question. we're losing sight of what is really at issue here which is the conduct of bain capital in those years. it's not like we're talking about something illegal here. mitt romney is affiliated with the mafia or something. they did some deals that people lost that jobs and they wo would

rather not defend that. so they are drawing a line. he wasn't there day to day. he was in utah at the olympics. >> greta: if i was an obama campaign i would be quite pleased talking about whether the bain, loss of jobs in light of such damaging things like so lynde dra as being a really bad, solyndra. in. >> they are saying about setting the terms of the debate. obama is happy to talk about this. not about unemployment numbers and these other things. but the same analysts and me and you decide what to talk about. >> greta: actually the unemployment level, this is what i don't understand, i would think that president obama would want to talk about some employment numbers because some of those in swing states are below the national average. i think he would rather be talking about that than getting down into the weeds as to when governor romney got out of bain?

>> i see your point. virginia is a good example where economy is doing better and florida too, too. but the last report the manufacturing numbers took a huge hit, very worrying sign overall. at this point, the economy is just a bad subject for obama to be talking about in general. >> greta: nice to see you. straight ahead the tea party in tampa or will they be getting this? a congressman is on the record next. and news about the judges in the 9th circuit. you know about their fancy meeting that was going to cost taxpayers million dollars and there is news. chris christie has a surprise tonight. is it a good surprise or a bad surprise? surprise? tell us ♪ [ female announcer ] life is full of little tests,

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>>. >> greta: this is a fox news alert. a bomb threat forcing detroit police to close the ambassador bridge. it's one of the busiest crossings in united states. police say the bomb threat was phoned in on the u.s. side. police are stopping traffic

across the bridge. so far no bomb has been found, just four days ago a bomb threat caused the closing of a tunnel and that turned out to be a false alarm. stay with us for the latest for the breaking news. what is the latest with the tea party? with the rnc campaign include the tea party next month in tampa. grassroots group had a powerful punch in midterm elections. >> good to be with you. >> do you expect the tea party which i assume you are a member, you were brought on the wave of tea party act vism. do you expect they will have a role in the convention next month? >> certainly think there is no question that the tea party will be a part of the overall apparatus. the key is the recognize that the fortunes of this election is so incredible that every facet

of the republican party will be part of the team. if you believe in free mashhd that would cause the platform that mitt rom will be speaking to us to the tea party and to the independents. >> greta: i suppose as much as they support free markets as want to be front and center coming into the election, if the tea party which is new grassroots movement that has had a huge influence on certain elections is it a prime time spot for speaking. i assume that might sting a bit, would it not? >> i think all family reunions are watch and entertaining but there is no doubt about it from my perspective, when you look what will happen in tampa you will see the reunification of the republican party. we support mitt romney and no more years for president obama. >> greta: who do you see as the

leaders of tea party movement? >> there is no question you look around the country and i think that the leaders of the tea party movement without question are everyday grassroots organizers who are working night diand to make sure that mitt romney is the next president of the united states. to try to figure out which political leader is the political leader of the tea party, i think it's probably a challenging venture because the tea party has so many tentacles, to identify one person or two people that are best leaders from the national perspective would do the movement an injustice. >> greta: if you look around congress and senate, you see governor sarah palin and representative michele bachmann as popular within the tea party movement. i find it hard to believe that if the tea party movement doesn't get respect, that means get some good strong position by

the romney campaign at the convention i believe they won't feel burned. that will have some impact on the level of enthusiasm going into the election? >> i honestly believe we have two positive things going for us for the republican party. looking at mitt romney he is bringing together a fantastic team of believe there's believe in the future of america. i think looking for the speakers during the convention, it's not my job and certainly i believe american people want to a new direction for this nation. tea party looks forward to finding a lot of good reasons to support mitt romney. that means the end of the obama years. >> greta: do me a favor. who is going to be the are vice president nominee. we pass rumors and get bits of information. i'm curious. who would you like to see on the

ticket. do you have a favorite? >> there is certainly, i definitely have a favorite. i will tell you what the outcome. it's senator portman looks like the best candidate that will end up on the ticket. marco rubio brings a lot of enthusiasm to the ticket. >> greta: you had a favorite, who was that? >> paul ryan, everybody appreciates the job he has done in the house. i think he would represent us well. doesn't do a bad job in wisconsin. he brings a lot of momentum and energy to the ticket. >> greta: and the great state of wisconsin, that is my home state as well. coming up, outrage over the convention, lavish price tag.

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>>. >> greta: it's on. ninth circuit court are hawaii

bound and on your dime. pressure isn't stopping the conference a will have a i can vacation that you will be paying for. the price tag about million dollars. but news that the 9th circuit is feeling the heat. jeff sessions is the charge against the court. we spoke with him earlier tonight. >> it looks like you 9th circuit to the next year's conference they have just announced they are cancelling it? >> i think it was good they reevaluated that. they insisted they wanted to do the right thing, four out of last that nine years have been in hawaii. there are seven states in the circuit. so i think it was a bit expensive. i do believe this is progress. i don't it hurts it was on your program that it was discussed. this is progress. they need to look and respond to some of the other inquiries we've made to the conference about how expensive it is.

>> greta: these conferences, they say they are done every year. these are not mandatory. no one is requiring these circuits to hold these conferences. this is something they do themselves. there is an appropriation for it but not required to do it? >> they are authorized to hold conferences. most of circuits are not doing a conference every year now. the 9th circuit has been having one every year. they are the biggest and most expensive conference. i think it's good they changed, but it's not mandated. we do not have enough money to fund this country. we are in the worst financial crisis in our nation's history. every department and agency has got to cut back and that includes the courts, but there are a lot of other departments and agencies in denial about the seriousness of our debt situation. i think it's going to be a constant battle. all of us needs to focus on how

to reduce wasteful spending. >> greta: at the risk of offending every judge in the country, i think they are waste of time. they can pick up the telephone. they decide their cases themselves on what happens in the courtroom. they don't need consultation at a spa in hawaii. you probably don't go as far as i do on them. >> i do attend as a united states attorney. it's no at critical matter for the functioning of the courts. the courts are facing tight budgets. they will get tighter in my opinion in the years to come. these are the kind of things you have to ask yourself, is this where we need to spend our limited resources. >> greta: chief justice roberts has not said no to it and two justices are still going to attend the one that has not been cancelled by the 9th circuit that is going to happen in

hawaii. should the chief justice waive his two associates and say its bad signal? >> the conference has been set. perhaps he conveyed a wish may be they shouldn't have one. he is a frugal manager of the court and he does know the court has to watch its spending. i would hope he would be an ally in the future and constraint in the costs. >> greta: you and senator grassley sent a letter off in may to the 9th circuit asking answers about the specific conference, million dollars. are you satisfied with the responses you got from the 9th circuit as to what they are doing, why they are spending this money? >> no, we're not. senator grassley and i had recently questions. one of fundamental ones, let's see the contract that you have. they say they can't breach the contract, therefore, they have

to go forward with this year's conference. >> greta: i'm sure there is a cancellation fee but not nearly as expensive to have the conference? >> well, that is true. i do say that i think congress would be entitled to see the contract. the court executed it with taxpayer money funded by the united states congress. we have not gotten that. there are some other questions we've asked we really should believed that has not been answered. >> you got a letter from the republican governor of hawaii. she sent a letter to you and senator grassley about sort of waving you off. she recognizes the financial impact to her state? >> she has been governor. she would like to have tourism in hawaii. they are advocating for it and

they don't want to see it collapse. but overall the jew dirge conference do they need to have it four times out of nine years in hawaii? some of the other states would like to have conferences held in those states and less expensive. >> greta: i take there is a big difference between conferences held in hawaii by private enterprises and conferences held in hawaii on the taxpayer dime? >> maybe some private businesses have the money to go to conferences every year and more expensive locations but we don't. this country is short of money. we are borrowing 40 cents of every dollar we spend, 40% of the one million dollar conference in hawaii is borrowed money. this is not a healthy thing. it's not to get better anytime soon. all of us have to fighten our belts. >> and the conference in

monterey, california, you got that. coming up attention online shoppers, this time governor chris christie has news for you. a chance that many of you are going to like this. and controversy over team u.s.a. uniforms. now china has something to say ♪ [ slap! ] [ slap! slap! slap! ] [ male announcer ] your favorite foods fighting you? fight back fast with tums. calcium rich tums goes to work in seconds. nothing works faster. ♪ tum tum tum tum tums ♪

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team u.s.a. uin forps are made in china and not america. china is responding it started last week. democratic lawmakers g >> u.s. lawmakers got steamed that the olympic uniforms got made in china. i think the olympic committee should be ashamed of themselves. i think they should be embarrassed. i think they should take all the uniforms and put them in a big

pile and burn them and start over. >> chine's agency is calling the u.s. hypocrital. it says if anything should be burned it's the hypocrisy of u.s. politics. and said they are going against the olympic spirit by combining politics with sports. what's your opinion, go to gretawire and tell us. [ male announcer ] summer is here.

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now get an incredible offer on the powerful, efficient c250 sport sedan with an agility control sport-tuned suspension. but hurry before this opportunity...disappears. ♪ the mercedes-benz summer event ends july 31st. ♪ >> live from america's news headquarters, i'm ainsley earhardt. a new report finds the count row's worst drought in more than a half century is spreading. about 55% of the continental u.s. is in some stage of a drought, having a devastating effect on the crops. farmers and business owners bracing for what is certain to be a jump in food prizeses because of the crop lost. june was the third driest month nationally in more than 100 years.

reverend michele louis and a woman from the boston area and a tour guide were taken off a tour bus on a road between kirow and mt. sinai on friday. the pastor and his companion might rejoin the group in israel. the kidnapper is demanding the release of his uncle from prison. they are now working on it. i'm ainsley earhardt. i'm ainsley earhardt and now back to greta. >> chris christie made a surprise move. what did he just do. he is throwing his support by putting sales taxes on online shopping, tax flee online shopping could be a thing of the past. more and more republican governors are taxing internet sales. why the sudden change. i imagine this is popular a tax increase by republicans? >> it's not technically a tax

increase. everyone is supposed to pay taxes on online taxes at the end of year. obviously nobody does that. so the states are not collecting the sales taxes so the governors see it as a way to help them balance their budgets without technically raising taxes. >> i have a sneaking suspicion this is not a tax increase. technically people are supposed to gather it up at the end of year. i think most people feel it's a tax increase? >> sure i think a lot of people would say that. there are some people some tea party groups see it as a tax increase and oppose it. but a lot of republican governors, rick snyder, mitch daniels, very conservative governors who are supporting this. they see it as an issue of fairness. why should something you buy online not have a sales tax when

you go down to your mom and pop shop, your physical brick and mortar store you do have to pay a sales tax. >> greta: people that go in camera shops and testing and looking at it. i want this camera but not buying, i'm going to buy it online to avoid the taxes. that skilling the brick and mortars or hurting them? >> right. that is what they say. the people lobbying this harder is big retailers. walmart and target, retail associations are really pushing for this. in fact the national legislation is called the marketplace fairness act. it's leveling the playing field. >> greta: what does governor christie get in return. get the it's a tax collected but does he get anything else? >> a lot of states including new jersey have struck deals with amazon where they will locate a

physical distribution center and bring the jobs there in return for paying the tax. there is also the federal legislation which would make all online businesses pay sales taxes. >> greta: how popular is this among the people. you mentioned the tea party groups. is there any level, any one seeing support for it. >> there is a lot of support. in the senate, a lot of retail groups are pushing hard for it. i think the other thing is that actually you do sometimes pay a sales taxes online if what you are buying is from a company that has a physical presence in your state. if you live in california and buying from a california business you actually do pay that sales tax. so for amazon, it's they are lobbying hard for a national tax. they want to build distribution centers all over the country which would mean they would be

acquired under current law -- required to pay that sales tax. if everybody has to pay it. >> do you know how much money this will mean for new jersey? >> i'm not sure. i don't think it will solve any sort of budget problems on the state level or federal level. but it would make a big difference for some of these retailers. >> greta: the brick and mortars that are trying to survive. thank you. straight ahead, nine lives and 15 years in office. what is an alaska's mayor secret to success? this is one story you do not want to miss. this is really weird story. it is next. also if you like getting paid and like vacation, we have the dream job for you. dream job for you. more on it next. ♪

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>>. >> greta: top stories but here is the best of the rest. he is known to social media fans add glen barian and fame us a us on bear is making an appearance. he was spotted in a tree. he stayed there for five hours. finally they moved him to the to

the forest. meatball frequent sightings have made him quite a slebtd. he even, celebrity. some people even want meatball to run for mayor. now, we know it sounds like a government job. imagine being paid a bonus to go on vacation. that dream is reality for the employees of a denver software company. they offering workers $7500 bonus to go on vacation. what is the catch? there isn't one. ceo says workers are banned from e-mailing tech go and phone calls while away and must go on a trip. he realized it's important to disconnect while on vacation. the company is currently hiring. >> and if you are going to visit one alaska town you better bring

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why nature made? they were the first to be verified by the usp. an independent organization that sets strict quality and purity standards. and that's why i trust nature made. nature made the number one pharmacist recommended letter vitamin brand. learn more at naturemade.com >> greta: time for last call. president obama is reflecting on his first term, what did he have to say? here is jimmy falon. >> in an interview obama said the biggest mistake of his first term was not telling a story to give americans a sense of unity. response, americans are like, yeah, fixing the economy would have been cool, too, but that story thing. yeah, that is a big problem.

>> greta: that is your last call. lights are blinking and we are closing down shop. thank you for being with us tonight. we'll see you again tomorrow night. make sure you go to greta wire.com there is an open thread, tell us what you thought aboutcted. in this city, in a landslide. >> demand it. >> kimberly: hello, i'm kimberly guilfoyle with bob beckel, eric bolling, dana perino, greg gutfeld. it's 5:00 in new york city. this is "the five." ♪ ♪ >> kimberly: attention all successful americans out there. when you were a kid your parents probably told you if you study hard and work hard you will grow up to be something. you earned it. deserve the credit. but president obama doesn't think you do it on your own. >> if you have been successful, you didn't get there on your own. you didn't get there on your own. i'm always struck by people

who think wow, it must be because i was just so smart. there are a lot of smart people out there. it must be because i worked harder than everybody else. let me tell you something. there are a bunch of hard-working people out there. if you were successful, somebody along the line gave you some help. there was a great teacher somewhere in your life. somebody helped to create this unbelievable american system that allows you to thrive. someone invests in roads and bridges. if you have a business, you didn't build that. somebody else made that happen. >> kimberly: all right. is this the kind of thinking that will fix our economy and restore america to greatness? >> greg: i suppose if you go by the logic, that is like if -- i couldn't have gotten my job interview if it wasn't for the fact there was a road there. i understand that. but that is idiotic. that is