This is a rush transcript from "Hannity & Colmes," June 23, 2008. This copy may not be in its final form and may be updated.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENTIAL CANDIDATE: Whatever we once were, we are no longer a Christian nation, at least not just. We are also a Jewish nation and a Muslim nation and a Buddhist nation and a Hindu nation, and a nation of nonbelievers.

(END VIDEO CLIP)

SEAN HANNITY, CO-HOST: We'll have much on that in a few minutes. But we start tonight with a Hannity & Colmes exclusive.

Joining us now with the very first look at his brand-new book is our own Dick Morris.

Video: Watch Part 1 of the interview | Watch Part 2

The book is — by the way, the longest title of any book ever read.

ALAN COLMES, CO-HOST: Whatever (INAUDIBLE)

HANNITY: And it's called "Fleeced: How Barack Obama Media Mockery of Terrorist Threats, Liberals who Want to Kill Talk Radio, the Do-Nothing Congress, Company that Helped Iran and Washington Lobbyist for Foreign Governments are Scamming Us and What to Do About It."

COLMES: We're out of time.

HANNITY: Very good, Mr. Colmes.

By the way, the book — I want to compliment you because I've head all your books. This is extremely well-researched. I mean I'm getting a lot of information about this. I follow politics every day, and I want to get into that in a second.

DICK MORRIS, "FLEECED" AUTHOR: Most of the research is — the really good chapters are Eileen.

HANNITY: Well, OK. You want to give credit, and you know, I'm not surprised. That's very nice of you.

Let me first ask you. We had two incidents last week — well, one incident last week where women with headscarves were barred from a Barack Obama event. There was an incident back in April where it was reported at a university newspaper that we need more white people behind Senator Barack Obama.

MORRIS: Right.

HANNITY: And then we have this comment that he made in Jacksonville, "They're going to try to make you afraid of me. He's young, inexperienced, he's got a funny name, oh, and did I mention he's black."

MORRIS: Yes.

HANNITY: What do you think?

MORRIS: This is not an error. This is not a blooper by Obama. This is a deliberate strategy, because what he wants to do is make the attacks on him all about race, all about his name, all about his reverend, all about everything but what he'd do as president.

And his hope is that he can keep the dialogue on that level. So one of the big reasons that my wife and I wrote this book is to set out the facts of what Barack Obama — black, white, or green — would do as president to the United States.

HANNITY: All right. I'm going to tell you something. You — this is — you wrote some phenomenal stuff. I want you to tell everybody your first chapter.

President Obama, what would he do?

MORRIS: He would double the capital gains tax. That means that you get far less when you sell your home or your 401K or your stock plan. He would double the dividends tax. That means that old ladies who clip coupons from corporate stocks get less money.

He would double the — he would increase the limit on Social Security taxes, which means that instead of paying 12 1/2 percent of the first $100,000, you pay it on everything that you're making.

HANNITY: Wow.

MORRIS: So.

HANNITY: And they'll never get that money back.

MORRIS: Gives you an effective tax rate of 60 percent, and it means no boss can raise your pay without having to shell out that extra money in taxes. Then he'll give 12 million illegal immigrants federally subsidized health care which will so drive up costs in the system that all of the rest of us will have to wait in line behind them.

HANNITY: Now if we add to that the fact that he does not have a plan for energy independence short of attacking the oil companies, and couple that — he says Venezuela, Cuba, Iran, tiny countries, don't.

MORRIS: Tiny countries.

HANNITY: . don't pose a threat.

MORRIS: It's worse than not having a plan. He said that he did not oppose the high oil prices. He said he wished there had been a period of, quote, "gradual adjustment, unquote.

HANNITY: Gradual — yes.

MORRIS: And the fact of the matter is that Democrats like Obama do not favor drilling for oil. They favor — solar and wind and geothermal, and everything but oil or nuke.

COLMES: And by the way, Dick, as you pointed out on this show a couple of times now, drilling for oil would not bring down the price of oil as much as.

MORRIS: Not immediately, no.

COLMES: Controlling the commodities market.

MORRIS: Right.

COLMES: I want to get into — a lot to cover here. Obama would cut taxes on those making less than $75,000 a year. He would totally eliminate taxes for elderly making $50,000. You have to make $250,000 or more to actually get a tax increase under Barack Obama.

MORRIS: No, that's not true.

COLMES: That is true according to his plan.

MORRIS: If you make $101,000 you get a tax increase.

COLMES: Not according to his plan.

MORRIS: No, you're saying that's the bracket. You only go up to 40 percent to $250,000. But the FICA tax, the Social Security tax of $101,000, your taxes go up because you're going to have pay it on your whole income.

COLMES: You're talking about raise in the FICA tax, but I'm talking about income taxes.

MORRIS: Yes, but.

COLMES: He's not raising people under.

MORRIS: I don't think people care much which pocket it comes out of. But the point about the — you were making a point right before that about energy or.

COLMES: Energy and oil and price of gas and the commodities market and the fact that you can't drill your way to lower prices.

MORRIS: Yes, you can't. Sorry, I forget what I was going to say. But the point is that Obama's tax increases, that's — when he says he's going to exempt different categories of people from paying taxes, what he's doing is he's creating a country in which there are two kinds of people, tax eaters and taxpayers.

And the majority of the people in the United States would not pay income tax. And therefore — but would receive middle class entitlements like health insurance and subsidies and all kinds of incentives.

COLMES: And the rich who can pay will pay?

MORRIS: So yes, but what that does is it creates a two-country system. Those who pay the taxes and those who consume taxes.

COLMES: They're still going to be taxing the middle class. But I don't want to get bogged down on this one issue but...

MORRIS: He will erode the tax base to a point where a minority of Americans pay taxes and a majority of people.

COLMES: We already (INAUDIBLE) tax base now.

MORRIS: . consume taxes.

COLMES: We have deficit and debt now growing under the Bush administration because of the eroding of the tax base. That's what's been going on the last eight years.

MORRIS: No, I don't want to get into that.

COLMES: Anyway, let's talk about — you also talk about Halliburton, the Iraqi government, American — talk about being fleeced. The Iraqi government, American defense contractors led by Halliburton fleecing the American public.

MORRIS: This drove me crazy.

Donald Vance, a Navy veteran, and Nathan Ertell both handed the FBI evidence of armed sales by a Iraqi company from Halliburton to insurgents, to our enemies.

COLMES: Yes.

MORRIS: And they assumed that they would be lauded. Instead Vance was imprisoned by the U.S. military in a security compound and subjected to harsh interrogation.

COLMES: All right. We're going to take a break, but is the fact that our vice president have — used to be head of this company of any relevance?

MORRIS: The only people that were — punished in the billion dollar rip-off by Halliburton of the American government were the whistleblowers, not Halliburton, not Cheney, who got them the contracts, not any of that stuff.

COLMES: We're going to pick it up right there. More with Dick Morris in just a moment.

Plus Barack Obama unveiled a new campaign seal. Some critics are calling it arrogant. Tonight, there is a late-breaking development in this bizarre story. Now the Obama campaign says they're not going to use it again. We're going to have more details coming up in the just a moment on Hannity & Colmes.

(COMMERCIAL BREAK)

COLMES: Barack Obama unveiled a new campaign seal Friday night that some critics are calling presumptuous. The logo looks similar to the presidential seal. Both featured an eagle clutching an olive branch and arrows. Obama's seal has the words "Yes, We Can" printed in Latin across it.

A spokesman for the campaign called the logo a, quote, "one-time thing." And late today the Obama campaign told FOX News they wouldn't be using the seal again and that they only ever intended to use it once at the event last Friday.

We now continue with the author of "Fleeced," Dick Morris. This really a big deal?

MORRIS: It's something out of "MAD" magazine, the Alfred Neuman seal.

COLMES: Yes, this is really — John McCain, by the way, National Republican Senatorial Committee used three different likenesses of the official seal. Want to play that game I guess we can do it both ways.

All right, the other news today, we're getting fleeced by the McCain campaign, which — see, you get your title in there.

MORRIS: Good.

COLMES: When Charlie Black, the.

MORRIS: Right.

COLMES: . McCain campaign advisor, says the assassination of Benazir Bhutto helped them. And then he goes on to say another terrorist attack on the U.S. would be a big advantage.

MORRIS: Yes.

COLMES: . for John McCain. Not a good thing to say.

MORRIS: Crazy choice of words, of course, but the point that he meant, which is basically true, is that anything that reminds us of the severity of the danger that we face from terrorism is going to help McCain because he's seen as better able to deal with it.

One of the things that I talk about at length in this book is the way the media systematically downplays terrorist attacks. The terrorists want to blow up the Brooklyn Bridge, and the "New York Times" says pathetically amateurish and unthreatening. They could have brought it down.

Blow up Kennedy Airport. The plot was lame, a less than mature plot.

COLMES: But Dick, I.

MORRIS: Invade Ft. Dicks with a machine gun and shoot GIs.

COLMES: I want get to Charlie Black.

MORRIS: . would-be terrorists with no military training.

COLMES: If — it's like (INAUDIBLE). But let me ask - you know, this — if a Democrat had said, you know, if the economy gets worse, it's good for us, you know, Republicans would be attacking that Democrat saying you guys want a bad economy.

MORRIS: Sure. Sure, and I.

COLMES: And so this and Charlie.

(CROSSTALK)

COLMES: Isn't Charlie Black stepped on it by saying.

MORRIS: It's appropriate to attack Charlie on it but I think it's important for us to understand the broader meaning of what he was trying to say.

COLMES: All right. You have my — you gave me honorable mention in the book, you called the "Alan Colmes Full Employment Project" the Fairness Doctrine. In all — in interest you should know that I'm against the Fairness Doctrine.

MORRIS: Right.

COLMES: Unlike many.

MORRIS: Let me explain to the viewers what that means.

COLMES: Go ahead.

MORRIS: The so-called Fairness Doctrine says that if he gets three hours on a radio show, you have to get three hours on a radio show.

COLMES: Well, I should, but.

MORRIS: So that's why call it the "Alan Colmes."

COLMES: He's already grimacing.

MORRIS: That's right. That's why it's called "Alan Colmes Full Employment Project."

COLMES: But I'm against the Fairness Doctrine. I don't want to play government.

MORRIS: But what I'm saying about this it isn't just the Fairness Doctrine. What the liberals are going to do is the federal communication statute says you have to have community representatives to speak for the public interest in your management and the ownership of the station.

And they are going to make — put liberals on the boards of all of these stations and in program directorships.

COLMES: Unlikely.

MORRIS: And that would be a requirement of getting your license, and if you don't, you get fined a fee that goes to National Public Radio.

HANNITY: Hey, Dick, I want to go back to the energy question here because it's driving me crazy. You know, think back to World War II, Pearl Harbor.

MORRIS: Yes.

HANNITY: I think I have — every ship that was sunk.

MORRIS: Yes.

HANNITY: How many lives were lost? This station was able to rise up and defeat imperial Japan, defeat the Nazis, and do it in record time when you really think about it historically speaking, and liberals are telling us, well, we're going to attack the oil companies which won't get us a drop of oil, and then they're saying, on the other hand, we — oh it's going to be 15 years to get it out of the ground.

MORRIS: Well, there's this fundamental problem that the left has with the oil issue. They are against oil, there's against drilling, they make the excuse about it offshore or it's in the tundra or in the shape — slate or it's in shale or whatever.

But the fact is they're against oil because they give global warming priority, which means they are perfectly willing to sit back and let there be $5 gas.

HANNITY: Will this impact the Obama campaign, and more particularly, you had a great chapter in the book called "The Do Nothing Congress."

MORRIS: Yes.

HANNITY: Nancy Pelosi and Harry Reid have half the approval ratings of George Bush.

MORRIS: Well, this is my wife's thing. She goes through each day of Congress and what they did. I mean it's incredible. January 3rd they got together for two minutes.

HANNITY: I read this. This is the part.

MORRIS: January 11th they passed a resolution honoring Gerald Ford, and they adjourned. Didn't come again until the 15th when they came into session at 7:31 and let out of session at 7:53.

HANNITY: It's like Alan's schedule.

MORRIS: These guys have never.

COLMES: Yes, yes.

MORRIS: And then on the 16th they had a really onerous workday. They commended the Florida Gators, the Martin Luther King birthday and the Boise State Broncos for their championship and then they came back the next day and honored the.

HANNITY: All right, so.

MORRIS: . Mora Island's(ph) 20 (INAUDIBLE) for their effort.

HANNITY: Here's my question. Will this impact Barack Obama — considering that John McCain, I think very wisely so, is reconsidering ANWR in a speech that he gave in Missouri. He's now open to offshore drilling, and Barack Obama doesn't.

MORRIS: The Republican position is.

HANNITY: . want one gallon of gasoline.

MORRIS: . drill, drill, drill. And that is correct. The Democratic position is do every alternate source, and that is correct. Doing everything is what is correct, and that's what the people favor, doing everything.

HANNITY: You talk at length about how the liberal media downplays terrorism, and you're talking to Alan about this here. But isn't it really the liberals and the Democrats, in particular, Barack Obama's position. If you don't think Iran is a serious threat.

MORRIS: Right.

HANNITY: . and those are the exact words of Barack Obama.

MORRIS: Right.

HANNITY: Will this be an issue in the campaign? I'm asking you, what issues are going to be important come November?

MORRIS: I think his belittling of Iran will be a huge issue.

HANNITY: You do.

MORRIS: And in this book we have a list of the 12 companies that are making it possible for Iran to develop nuclear weapons by investing.

We list them.

HANNITY: Yes.

MORRIS: Alcatel, Royal Dutch Shell, Siemens, Hyundai, the London Petroleum — these are the companies that are — providing the revenue to Iran to drill for oil to make it possible for them to fund their nuclear energy.

HANNITY: How does — how do they get away with that?

MORRIS: Well, the way we have to deal with it is to get pension funds to stop investing in it and high net worth individuals to take their money out of those companies.

So please.

HANNITY: Yes.

MORRIS: Look at the list and make sure it's not — you're not owning any of this stock.

HANNITY: I want to go back to one of the things you said earlier on in this book. If Democrats win the election federal taxes will go up, income, Social Security, capital gain taxes, state taxes, that's all going to happen.

Do you think — because Barack Obama and Michelle Obama now — the "Washington Post" today had talked about his makeover. The "New York Times" last week talked about her makeover, they seem to both be scripted, they both are being — you know, trying to change their image.

Will this substance that you put in this book — and you did a lot of research in this book — will that get to the American people?

MORRIS: It has to. I mean the problem is that there's this conspiracy going on between the right wing and Obama which is all we want to talk about the Jeremiah Wright and all we want to talk about is William Ayers.

HANNITY: I might have gone a little too far. But I'm.

COLMES: Want to say that again.

HANNITY: Well — no, no, I've gotten far as we've talked about it enough.

COLMES: I see. I see.

HANNITY: We don't want to talk about the subject.

MORRIS: We don't want to talk about his tax hikes. We don't want to — the Patriot Act. It says when you're investigating a terrorist you have to give him — 180 days after you start — yes, (INAUDIBLE).

Obama wants to make it seven days. The Terrorist Notification Act of 2007.

HANNITY: All right. Let me tell you something, folks, the book is incredible, it's well-researched, and you've got a lot of great stuff of what an Obama presidency would look like.

Dick Morris' brand-new book, and Hannity.com, Amazon.com, bookstores everyone. Congratulations. Great book.

MORRIS: Thank you. And by the way, an autographed copy at DickMorris.com.

HANNITY: OK. There we go.

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