This is a rush transcript from "On the Record," August 6, 2012. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: Tonight: The sliming gets worse! The battle over Governor Mitt Romney's tax returns gets even dirtier! Senator Majority Leader Harry Reid and now House Minority Leader Nancy Pelosi both displaying deplorable political behavior! Last week, Senator Reid twice accused Governor Romney of not paying taxes for 10 years, but he refused to name his source.

(BEGIN VIDEO CLIP)

SEN. HARRY REID, SENATE MAJORITY LEADER: (INAUDIBLE) that he hasn't paid any taxes for 10 years. Let him prove that he has paid taxes, because he hasn't.

(END VIDEO CLIP)

VAN SUSTEREN: And now House Minority Leader Nancy Pelosi backing up Senator Reid's anonymous and uncorroborated accusation, Congresswoman Pelosi saying, "Harry Reid made a statement that is true. Somebody told him. It's a fact. Whether he did or not can easily be deposed -- disposed of. Mitt Romney can release his tax returns and show whether he paid taxes."

It's one thing to name names so it can be investigated to see if it's true. It is another thing to just stir up gossip and rumor by throwing around explosive and poisonous allegations. That's just dirty!

And Republicans are not taking it lying down, RNC Chair Reince Priebus firing back at Senator Harry Reid.

(BEGIN VIDEO CLIP)

REINCE PRIEBUS, RNC CHAIR: As far as Harry Reid is concerned, listen, I know you might want to go down that road. I'm not going to respond to a dirty liar who hasn't filed a single page of tax returns himself, complains about people with money, but lives in the Ritz Carlton here down the street.

GEORGE STEPHANOPOULOS, HOST, ABC "THIS WEEK": You just called him a "dirty liar." You stand by that? You think Harry Reid's a "dirty liar"?

PRIEBUS: I just said it.

(END VIDEO CLIP)

VAN SUSTEREN: RNC Chair Reince Priebus joins us. I'll give you one more time. You want a do-over or you just stand by that still?

(LAUGHTER)

PRIEBUS: Well, it's the truth. I mean, he is what he is. And using the position of majority leader on taxpayer money on the floor of the Senate -- I mean, it's just a pathetic maneuver on behalf of Harry Reid.

I do have another good job for him. Since we have a new Sherlock Holmes among us in Harry Reid, he ought to find all of his anonymous sources and all of his tipsters out there, and he ought to investigate what David Plouffe is doing with a group affiliated with the Iranian revolution army. So we'll take our Sherlock Holmes, Harry Reid, and put him in charge of that investigation since he's so good at it.

VAN SUSTEREN: And I guess that we should -- maybe we should explain that reference is to David Plouffe before he was at the White House, before he went to work for the White House, that he gave a speech in Africa for MTN, which is part of Iran's cell, which is fully owned by the Iranian Revolutionary Guard, which, of course, cracks down on dissidents and was -- and is largely responsible for its nuclear program.

He wasn't at the White House at the time. Nonetheless, if you want sanctions to work, we ought to all stand by them.

PRIEBUS: It's just deplorable! No American should be entering into any contracts that are funded or affiliated with the Iranian revolutionary army, let alone a guy who is very involved with Barack Obama, then takes a job in the White House, does a one-off for $100,000 just before he steps into the White House.

I mean, these are the things that Harry Reid and all of these guys ought to be worried about, not making up stories on the floor of the Senate.

Here's the deal. I think that this president's got a problem with the American dream in this country. This is what it comes down to. I don't know a parent in America that drives on the street with their kids -- my dad was a union electrician from Kenosha, Wisconsin. He -- he -- we didn't look at the house on the corner that was beautiful and big and my parents didn't say, Hey, look at these lousy people over here.

They pointed to the house and they looked back at me and said, Listen, pal, if you work hard and you go to school, you're going to be in that house. And mom and dad hope it's even bigger.

And I think in the end, all of this noise and all of this garbage coming from these guys is all going to turn against them because people in America, Republicans and Democrats, believe in the American dream, and they sure as heck believe in it for their kids.

And I don't get what this president's all about anymore.

VAN SUSTEREN: Well, let me...

PRIEBUS: And I think it's going to -- I think it's a bad mistake for him to demonize this idea of making something from nothing and being successful.

VAN SUSTEREN: All right. I don't like the idea of anyone being bullied into having to produce anything. However, tax returns give us an idea about someone's financial background. And in Governor Romney's situation, it might tell us whether he is as good a businessman as he claims to be, or whether or not, you know, to some -- to some -- to some Americans, it might make a difference how much taxes he paid, what percentage.

Do you think that it's appropriate for him politically, strategically -- he doesn't have to -- but to withhold tax returns?

(CROSSTALK)

PRIEBUS: No, but the thing is, here's the deal. He's not, though. I mean, he's released two years of taxes. He's going to release the 2011 taxes in full when those get completed. He's released 500 pages that have been filed already with the FEC.

And this is the deal. I think as Republicans and as people in this country that care about these issues and care about what matters in this campaign, which is jobs, the economy, the debt, all the promises made by Barack Obama -- I think that, you know, taking this lying down is a mistake, and that's why we came out so strong yesterday.

We are not going to get pushed around by these baseless accusations that the president's behind. I mean, the president is behind this. All he has to do is say to Harry Reid, You know what? Cut this garbage out. This is not what I'm about. This is not what I campaigned on in 2008.

The problem is, this president isn't who he said he was. And all of this is going to come unraveled. And I think the American dream and the idea of the American dream is going to defeat Barack Obama.

VAN SUSTEREN: All right, well, my whole problem is I hate anonymous sources completely because...

(CROSSTALK)

VAN SUSTEREN: Let me ask you about the conventions coming up. Not on your speaker list so far are (ph) Governor Palin. Is she going to speak?

PRIEBUS: I can't make that announcement tonight, but certainly, she's great and we -- I think a lot of her and hope that she does speak.