Dick Morris Breaks Down Cap-and-Trade

This is a rush transcript from "Hannity," June 26, 2009. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: Earlier tonight, the House passed the cap and trade cap and tax legislation the Democrats argue will help combat global warming. But the cost of it will have an effect on families all across this country. The Wall Street Journal warns that this bill includes the single largest tax increase in American history.

And joining me now is the author of the brand-new book, "Catastrophe," former Clinton adviser Dick Morris.

Well, first of all, it was what, 219-212?

DICK MORRIS, AUTHOR, "CATASTROPHE": Well, what it was, was one vote more — one vote more than needed, and what I'm sure they did. There was no big thing. They were rounding up votes. Nonsense. What they were doing was having a war for who they would let off the hook.

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What happens in a situation like this is the party decides to pass this bill, all of them. They're all responsible. And then they say, "Well, you're the most vulnerable members, so you don't vote." And the next 30 most vulnerable. The 38th, he's got to vote yes. And then there's a fight on 37th, on 38th.

But the number of votes for is a preordained conclusion. So what's going to happen now is all of these conservative Democrats are going to go to the district and say, "I voted against it," which is absolutely nonsense.

HANNITY: Well, the point is, it is the single largest tax increase. It's a jobs killer.

MORRIS: A doubling of the utility bills if you are in a coal-fired region. It literally will double your utility bill.

HANNITY: Why is it — and I understand the coverage of Michael Jackson. We spent a lot of time on it tonight. And we spent a lot of time on this bill and on nationalized health care leading up to this.

Most Americans don't know that we're going to lose 2.5 million new jobs and that your electricity bills, as a result of this vote tonight, will go up maybe as high as $3,000 per family.

MORRIS: In researching the book, "Catastrophe," I did a good interview with John Bolton. And he made — former U.N. ambassador. And he made the point that this is a massive, massive transfer of wealth from the northern hemisphere, the developed countries, to the southern hemisphere, the underdeveloped countries. Because basically, the utility — it's like the old papal indulgences. They have to pay for the right to sin.

HANNITY: Right.

MORRIS: To pollute. And the people that get the money are in Africa.

HANNITY: They other part of this is either these companies are going to pass the cost on to the consumers — that's you, the American people — or they're going to end up moving jobs overseas.

MORRIS: It will be both. They'll pass the cost on to the consumers, and when businesses looks at its high utility cost, they'll move overseas.

We have only just begun to revive the manufacturing sector, because transportation costs began to outweigh labor costs. And that was our edge over China. We've just given that up. And the Chinese, by the way, aren't doing anything to reduce this. So we have this huge competitive advantage.

HANNITY: It was determined we're unilaterally disarming in terms of our capitalism and competitiveness, with countries like China. Isn't that — is that fair?

MORRIS: Just put all this together. He's borrowing at record amounts, raising interest rates, hurting the recovery. He's socializing medicine so that we can have like cancer — Canada, a 16 percent higher death rate.

He's doubling utility bills. He's going to increase taxes by over $1 trillion to pay for his health care legislation. He's letting in illegal immigrants with an amnesty provision with a pot of gold of health care insurance waiting at the other end if they jump the fence, the border. This is — could I coin a phrase? — a catastrophe.

HANNITY: That was a good title for a book, by the way. But when you couple...

MORRIS: I mean, it's really serious.

HANNITY: When does this become, now, his problem: nationalizing health care, cap and tax, CEO pay, insurance companies, financial institutions, banks, quadrupling the deficit, quadrupling the deficit — when does this become Barack Obama's political problem?

MORRIS: Well, there's a question that Rasmussen asks that I worked with him on, where he says, is this Bush's recession or is this as a result of Obama's policies?

HANNITY: More and more...

MORRIS: Last month, it was 62-27, it was Bush. This month, it was 54-39. I predict that in July, it's going to be even. By August, it will be Obama's problem. And by September, he'll be in trouble.

And you know what? Obama agrees with me. You know how I know? He is rushing all this stuff through. He's got to keep this going while he's got some popularity.

HANNITY: In other words, does that mean that health care is in jeopardy, hopefully?

MORRIS: Yes. Health care is in jeopardy, and so is this climate change bill.

HANNITY: How do we — how do you stop it now that it passed tonight in the House?

MORRIS: Well, the Senate is a very different story. And the senators from swing states like Evan Bayh from Indiana, I don't know if the Indiana voters are going to enjoy a doubling of their utility bills. Dixon of Illinois.

HANNITY: Do you think Democrats...

MORRIS: Pressure on those guys has to be intense.

HANNITY: It's going to be enormous. And they can't buy — there's enough money to buy their support? Or they're saying, politically, "I'm going to get killed. I'm not going to do it"?

MORRIS: Politically, I'm going to get killed.

HANNITY: I'm not going to do it.

MORRIS: You know how volatile utility rates are as an issue.

HANNITY: Three thousand dollars per family.

Now by the way, your book just came out. You're going to be at Book Review in Huntington, Long Island.

MORRIS: Right.

HANNITY: Tell us about it.

MORRIS: Well, signing books and giving a speech.

HANNITY: Tomorrow night.

MORRIS: Tomorrow night.

HANNITY: At 7 p.m.

MORRIS: At 7 p.m. at Book Review in Huntington, Long Island.

HANNITY: All right, folks. That book...

MORRIS: For those of you who are in California, you don't have to come.

HANNITY: They can on a plane quick.

MORRIS: Yes, right.

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