• With: Sen. Marco Rubio, R-Fla.

    This is a rush transcript from "Your World," August 1, 2013. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: Welcome, everybody. I'm Neil Cavuto. And this is "Your World."

    Moments away from Marco Rubio here to weigh in, among other things, this Republican I guess you can call it brouhaha captivating the nation, and actually first foaming here.

    (BEGIN VIDEO CLIP)

    SEN. RAND PAUL, R-KY.: We're going to have to patch things up. If we can sit down -- I'm inviting him for a beer. Any time he'd like to come down and sit down at the pub right around the corner from the Senate, we will have a beer.

    CAVUTO: Have you heard anything on that invite?

    PAUL: Excuse me?

    CAVUTO: Have you heard anything on that invite?

    PAUL: It hasn't been formalized. I just thought of it.

    CAVUTO: Just now?

    PAUL: So, we will formalize it and we will put it in writing.

    (END VIDEO CLIP)

    CAVUTO: Well, no need, because what a difference a day makes, and 24 hours after my chat with Rand Paul went viral, the beer summit effectively went dead.

    (BEGIN VIDEO CLIP)

    GOV. CHRIS CHRISTIE, R-N.J.: It was never about Senator Paul until Senator Paul tried to make it about me and made it personal.

    UNIDENTIFIED MALE: He suggested maybe the two of you sit down and have a beer and bury the hatchet.

    CHRISTIE: I'm running for reelection in New Jersey. I don't really have time for that at the moment.

    (END VIDEO CLIP)

    CAVUTO: All right, well, talk this day on blogs and news shows and newspapers everywhere of an open rift in the Grand Old Party between traditional Republicans big on defense and fighting terror, i.e., Governor Christie, and those who argue not if that fight compromises our basic privacy and the government abuses all our privacies, i.e., Senator Paul.

    Now to the man many argue is uncomfortably caught in the middle of this party food fight, Florida Republican Senator Marco Rubio, who, like those other two gentlemen, is often mentioned as a potential presidential candidate himself.

    So, Senator, I quickly inserted you in this food fight. That was my doing, not yours.

    (LAUGHTER)

    CAVUTO: What do you make of it? And do you think it's much ado about nothing or does the party have a problem on its hands?

    SEN. MARCO RUBIO, R-FLA.: Yes, well, first of all, it's an interesting dynamic that's playing out and I will let them figure that out.

    But it's an important debate. I think the question -- I think the answer to the question is, we have to do both. We do have to protect not just privacy rights, but privacy expectations. And I understand when we have a government that has targeted people, the IRS has targeted Americans because of their political views. Of course, Americans are concerned how the government and how it is going to use information that it has about them.

    On the other hand, we know these programs are essential and important because they have been able to foil attacks in the past and will do so again in the future.

    So, I think the fundamental question we have -- and it's not -- we can trivialize it, but it's a very significant issue -- is on the one hand how do we prevent terrorist attacks in the future? We know that terrorists use technology to coordinate. And I got to say, Neil, if Usama bin Laden was calling someone in the United States, we would want to know that because I promise you his wasn't his stockbroker he was calling.

    On the other hand, I think people need to know and people need to be comfortable that the government is not going to gather all this information on them and one day in the future use it against them or have it leaked for commercial purposes.

    This is a legitimate issue. We shouldn't trivialize that either. And balancing those two things is not an easy thing to do. And I think what we're struggling with as a country, is how to protect Americans and also protect Americans, but also protect their individual liberties and their privacy expectations. It's not a trivial issue. And it's an important one for us to try to balance, and we just haven't worked it out yet.

    (CROSSTALK)

    CAVUTO: Maybe so, sir, but it looks like Republican are having a hard time reconciling those two extremes, because to hear Senator Paul tell it, if we're getting these constant reports out of the NSA that it went beyond just collecting over 115 million Americans' phone records, to the latest news that is was every e-mail, every -- every site folks went on, so much information, so fast, that they really couldn't even hold it that long because it was just too massive to hold, that does raise the kind of concerns that Senator Paul has had that Chris Christie seemed to dismiss.

    What do you think?

    RUBIO: Yes.

    But, first of all, of course, we always need to be reviewing the scope of what the government is doing and whether it's justified, and that should be constantly reviewed. The problem with reviewing it of course is that the tactics that the government uses to gather intelligence, the more public it is, the easier it is for our enemies to evade it. So it makes it difficult to have the kind of open debate on these issues.

    CAVUTO: Right.

    RUBIO: And there's some misinformation in the press about how these programs work too.

    On the other hand, I wouldn't dismiss these concerns offhand. Again if you're back home and you all of a sudden realize the government has the capability and in fact is gathering information on every phone call made in America, you're concerned about how that could be used at some point in the future not just by the government but by individuals working for the government, and by somebody who all of a sudden in the future may decide to politically target people. That's a legitimate concern.

    So, again, I'm not trying -- I don't think we should trivialize the debate beyond the personalities involved. It's a very significant balancing act. These are important programs. We have to be able to do some of this, but we also have to figure out a way to do it in a way that Americans have more confidence.

    And I think a lot of that starts by leadership that people have confidence in. And when you have reports out there that the IRS has targeted Americans, that undermines that confidence.