• With: Rep. Paul Ryan, R-Wis.

    This is a rush transcript from "Hannity," March 12, 2013. This copy may not be in its final form and may be updated.

    SEAN HANNITY, HOST: Tonight, the chance for real economic prosperity has been unveiled courtesy the House Budget Committee Chair Paul Ryan; and he will be joining me live momentarily to detail his bold and controversial budget plan.

    But first, let's take a look at what he's proposing and why the president and Democrats need to listen and why they need to act. And here are the basics. According to Ryan's fiscal blueprint, the budget will be balanced in 10 years and it will not raise taxes. So, how does he accomplish this? Simply, he doesn't spend what we don't have. Now, here is how the congressman explained it earlier today.

    (BEGIN VIDEO CLIP)

    REP. PAUL RYAN, R-WIS.: This budget cuts spending by $4.6 trillion over the next 10 years. Historically we've paid a little less than one-fifth of our income to the federal government, but the government has historically paid a lot more, spent a lot more. We match revenues with expenditures, so our budget matches the spending with our income just like every family and business must do throughout America.

    (END VIDEO CLIP)

    HANNITY: All right. To help us reach this balanced budget in just 10 years, Congressman Ryan lays out four major issues that we as a country must tackle.

    First, energy. Now, Ryan's proposal opens lands to development, paving a path for affordable and American produced energy, most notably, the plan green lights the Keystone pipeline which is estimated to generate almost 140,000 jobs.

    Now, second, health care. Now first and foremost, the budget repeals ObamaCare, strengthens the Medicare system by making it sustainable for future generations.

    Third, welfare reform. The plan builds on the changes to welfare that were made in 1996 by extending reforms to other federal aid programs. It gives states flexibility so they can tailor programs like Medicaid and food stamps that will met their state's needs.

    Now, lastly, it addresses tax reform by calling for Congress to simplify the code, by closing loopholes and consolidating tax rates. Now, Ryan's goal is to have just two tax brackets, 10 percent and 25 percent.

    So the question now is, well, will Democrats see this as Congressman Ryan and again, just throwing granny over the cliff, are they going to demagogue it? Now, don't laugh a sequel to the original ad is already out, we're going to play that for you in just a few minutes. Or, will Senate Democrats who haven't passed a budget in more than 1,400 days, will they seize this opportunity to get the country on a fiscally sound path like Paul Ryan is presenting?

    Now, I'd like to be optimistic, but judging by the reaction from the president himself earlier tonight, that's not going to be the case. Now, listen to what he told ABC's George Stephanopoulos.

    (BEGIN VIDEO CLIP)

    GEORGE STEPHANOPOULOS, ABC ANCHOR: Paul Ryan today put forward his budget and he says he's challenging you to come forward with a budget that also reaches balance. Are you going to do that?

    PRESIDENT BARACK OBAMA: No. My goal is not to chase a balanced budget just for the sake of balance. My goal is how do we grow the economy, put people back to work, and if we do that, we're going to be bringing in more revenue. If we've controlled spending and we've got a smart entitlement package, then potentially what you've have is balance, but it's not balance on the backs of the poor, the elderly, students who need student loans, families who have got disabled kids. That's not the right way to balance our budget.

    (END VIDEO CLIP)

    HANNITY: Oh, deja vu all over again. The president demagoguing Armageddon, what a shocker.

    Now, here to expand on the budget plan that he unveiled earlier today in the House, that is the Budget Committee chairman himself Paul Ryan. Congressman, welcome back to the program. Good to see you sir.

    RYAN: Hey, great to be back with you, Sean, thanks for having me.

    HANNITY: All right. Let me first let you respond to the president. Are you going to be spending every year? Will your budget spend more money every year or will it spend less money every year than we spend today?

    RYAN: Actually, more.

    HANNITY: Every year will spend more than the next year?

    RYAN: Every year. Yes, I just listened to this for the first time, I just heard his interview, I think that was George Stephanopoulos if the voice was right.

    HANNITY: Yes.

    RYAN: That didn't sound too charming to me, I guess I would say. Our budget grows government spending every year by 3.4 percent, instead of the president's path that we are on right now, which is five percent a year. So, here is what we're saying, is it so draconian to scale back the increase in spending by 3.4 percent a year instead of growing it by five percent a year over the next decade.

    The difference, of course, is balancing the budget and getting our debt on a path to being paid off so our children inherit a debt-free nation. I'd also say, balancing the budget helps grow the economy and that's what we're trying to do here.

    HANNITY: Look, I really want people -- because I don't think that most people understand the calculators that you guys in Washington use, so I want to be very, very clear here. So, every year for 10 years under your plan, spending real dollars will increase 3.4 percent, every year, there will be no cuts in spending.

    RYAN: That is the average increase of annual spending growth each and every year over the next decade.

    HANNITY: And the president's planned spending will go up over five percent a year.

    RYAN: That's right.

    HANNITY: All right. So, you just have a difference on how much you're going to increase spending.

    RYAN: Right.

    HANNITY: All right. So the difference over 10 years is they will spend $46 trillion under the president's plan and you will spend 41 trillion.

    RYAN: That's right.

    HANNITY: So, and that is all we need to do to get to a balanced budget?

    RYAN: That's right.

    HANNITY: Yes.

    RYAN: Without raising taxes.