Updated

This is a rush transcript from "Hannity," March 26, 2010. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: In the aftermath of the health care votes the Democrats' latest tactic to blame Republicans for stoking the anger of Americans.

Now the Democrats may not have noticed but it's not the Republicans making people angry. It is the out-of-control spending and the unprecedented growth of government engineered by this administration that has enraged so many Americans and that sparked the Tea Party movement in the first place.

Nonetheless, the Democrats continue to grasp at straws looking for anybody to blame but themselves.

Now the latest target former Alaska Governor Sarah Palin who was attacked by liberals far and wide for referring to, quote, "targeted regions" in the upcoming election.

Well, how inappropriate, right? Now here's what the governor had to say on the subject earlier today while campaigning for Arizona Senator John McCain.

(BEGIN VIDEO CLIP)

SARAH PALIN, FORMER ALASKA GOVERNOR: We know violence isn't the answer. When we take up our arms, we're talking about our vote. We're talking about being involved in a contested primary like this and picking the right candidate, too. John McCain.

We thank you for that.

But this BS coming from the lame stream media lately about this — about us inciting violence.

(CHEERS AND APPLAUSE)

PALIN: Don't let — don't let the conversation be diverted. Don't let a distraction like that get you off track. Keep fighting hard for these candidates who are all about the common sense conservative solutions that we need.

(END VIDEO CLIP)

HANNITY: All right, now meanwhile, Tea Party leaders have entirely disavowed everything the Democrats have accused them of.

Now organizers of the Florida Tea Parties issued an open letter declaring that they, quote, "Stand in stark opposition to any person using derogatory characterizations, threats of violence or disparaging terms towards members of Congress or the president."

A coalition of Colorado groups had a similar message saying, quote, "Tea Party and similar groups all across Colorado are saddened to hear of threats made upon Democratic lawmakers in response to the passing of their recent health reform legislation."

Now those sentiments were echoed by Tea Party groups all around the country.

So will the Democrats, in their latest attempt to distract, you the American voter, from their disastrous health care legislation, will it be successful?

Joining me now with analysis from the FoxBusiness Network, Charles Gasparino, and from Project 21, Fox News contributor, Deneen Borelli is with us.

This is a total distraction. Will it be successful?

DENEEN BORELLI, PROJECT 21: They probably wish it will be successful. But they need to look themselves in the mirror, the liberal Democrats. Because thanks to them, they are the ones who have really propelled the emotional state of the American people.

They've rammed all kinds of things down our throat. Health care. Next up is probably cap-and-trade which is going to be a job killer. So clearly, the American — we're getting rolled. Plain and simple. We're tired of it.

CHARLES GASPARINO, FOX BUSINESS NETWORK: You know, you asked if it is successful. I think it's becoming successful, unfortunately. And, you know, when Sarah Palin —

HANNITY: You think the effort is successful.

GASPARINO: Yes.

HANNITY: I mean the smear.

GASPARINO: Yes, but look what she's doing, she's defending herself. I mean, right now, we should be — I mean the Tea Partiers and the debate should be on the massive cost associated with health care. The ridiculous numbers come — that the White House produced. The absurd, you know, things that came out of the CBO report.

And instead we're talking about, you know, stuff that you — do you get death threats?

HANNITY: All the time. All the time.

GASPARINO: I cover Wall Street and I get them.

BORELLI: And try being a black female conservative.

GASPARINO: Well, yes. I agree.

HANNITY: You get —

BORELLI: Oh, yeah.

(LAUGHTER)

HANNITY: All right. But this is the thing. All of us have gotten them. And Eric Cantor had a bullet fired through his campaign office. And he said I'm not going to dignify this. This is what law enforcement is for.

Everybody wants and supports the safety and security of our elected officials whoever they are. And — but Governor Palin, I think she's right to take it on. Because she's saying don't be distracted. Don't fall for their tactic and their trick here.

BOREILLI: Absolutely.

GASPARINO: And the mainstream media would love to stereotype the Tea Partiers as crazy. And as we all know, both sides have their loons. Right? How about Bill Ayers? I mean what was he?

HANNITY: Yes. I mean he was an actual terrorist.

GASPARINO: He was an actual terrorist.

HANNITY: Just a guy in the neighborhood that I associate with, I start my career.

GASPARINO: Associated with the left and, you know, apparently friendly with Obama.

BORELLI: But this started from day one. I mean the Tea Party movement is a year old, and they started from day one calling them Astroturf, calling us racist and rednecks.

I'm part of the movement, I was a speaker last year on 9/12 on Washington, D.C.. I'm pretty dark. OK? So let's not erase this movement. I am in the movement because I believe in small government, self-reliance.

(CROSSTALK)

HANNITY: You're a conservative.

BORELLI: I am a conservative.

HANNITY: You know, but think of Governor Palin having to do this. Think of all the attacks against her. There was a comedian there that talked about, quote, "a gang rape." Remember that? You know? Some time ago.

GASPARINO: Right.

HANNITY: So, I mean — and George Bush was pretty much called every name in the book. Now all of a sudden we're getting lectures about tone and civility from the very people that were responsible.

GASPARINO: I mean the left — if you read left-wing blogs they are some of the most irresponsible stuff that is — that you see in sort of —

HANNITY: Just read —

GASPARINO: In modern discourse.

HANNITY: Read about me.

GASPARINO: I know.

HANNITY: Just go and read the lies and the smears. It's not funny.

GASPARINO: It's not.

HANNITY: It is hurtful to a lot of people.

GASPARINO: But, you know, the real story is the debasement of discourse in America right now from that — that is out there. And that's what this is about. It's not — both sides have their crazies.

The Tea party People, you know, by and large mainstream. I mean I've met with them. What are they talking about? They talk about lower taxes, less government. They're not talking bombing the White House.

HANNITY: But — I never understood this from the beginning. But why would the Democratic Party specifically target the Tea Party movement? Tim McVeigh wannabes, un-American?

I mean what's more quintessentially American than saying kill the bill, exercising your First Amendment rights, limited government, lower taxes, speaking out against socialism? What's so bad about this?

BORELLI: They don't want to be challenged. And because of their actions and their arrogance there are even more people coming in to the Tea Party Movement. So they have themselves to thank for this.

GASPARINO: And it also fits their universal long held stereotype that, you know, the conservative movement is filled with Neanderthals. People who don't think and people who would rather just shoot before they talk.

HANNITY: Listen, I'll never forget. I said this last night. The 1998 radio ad by the Democratic Party in Missouri said if you elect Republicans black churches are going to burn. Remember that ad?

BORELLI: I do. Yes.

HANNITY: By the Democratic Party.

BORELLI: And more race-baiting. I mean look at what happened recently — last week with Charlie Rangel? I can't pay my taxes. He said that — and I quote, you know, "You don't see any black folks in these groups. Ever, ever, ever, ever."

(CROSSTALK)

BORELLI: He said it last week.

GASPARINO: Charlie Rangel has said repeatedly people for lower taxes are racist.

(CROSSTALK)

GASPARINO: It's a racist element. He said that repeatedly.

HANNITY: Here's where real — people's real concerns are. There's a Fox poll out, 79 percent think the economy is on the verge of collapse. Moody's talks about America losing its AAA rating.

Look at the comments of Caterpillar, Verizon, John Deere and a whole variety of other big employers in this country. Real job creators. And they're saying — Caterpillar, for one example — $100 million hit because this bill is passed. That people that have retired are going to see their benefits be reduced. The exact opposite of what the president promised if we passed health care.

BORELLI: And where are the other corporations coming out on this? They are not only ones.

GASPARINO: I don't trust these corporations. This is a lot — this is crony capitalism. But I will tell you this, for them to actually say that —

HANNITY: What do you mean by crony capitalism?

GASPARINO: It's three times worse. If they're saying this, it's thee times worse because all these companies rely on the White House and the administration for largess. If they're saying this, it's got to be much worse.

HANNITY: Did you see AT&T expects Obamacare to cost $1 billion? $1 billion.

GASPARINO: I bet it's $2 billion.

HANNITY: Why didn't we hear this before the debate? Did the media ignore it?

GASPARINO: Well, I've always said that they did. I mean I always believe — listen, when I heard and I was on your show and I told you about this, the $138 billion savings when that was being touted as something great. But when you really think about it, $138 over 10 years, that's $13 billion a year.

In a context of an economy, that's trillions every year. It's a drop in the bucket. That's if you believe their numbers, by the way.

HANNITY: All right. Let me ask you — one political question, if I can.

BORELLI: Sure.

HANNITY: Because the anger is palpable. It's real. It's intensity that I've never seen in my lifetime. By the way, I'm inspired by it and I hope people are not intimidated. I hope people continue to speak out.

But isn't — with this point the only answer is to go to the ballot box and fire Nancy Pelosi, fire Harry Reid and elect a new president in 2012, or else this is the law of the land.

BORELLI: Well, that's just it. For years, you know, we — a lot of people were politically asleep. So they're too busy working, they're raising families. And now that we've seen that our electived representatives are not representing us, they're only representing themselves because we have a lot of career politicians.

GASPARINO: Right.

BORELLI: So people have got to go to the polls and make the choices.

GASPARINO: And what's scary about the situation we're in right now, I believe people feel helpless. I mean think about what they're going to do? They pushed this through through reconciliation. They did not listen to the fact that 55 percent of the American public was against it. That's a lot.

And by the way, 10 percent more, you know, were unsure. And they rammed this through when large majorities of the American public were against it. And I think that's part of the anger.

HANNITY: All right, guys, good to see you tonight. Thank you for being with us.

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