This is a rush transcript from "Hannity," December 3, 2010. This copy may not be in its final form and may be updated.
SEAN HANNITY, HOST: This post election season has not been easy for the Democrats and they only have themselves to blame for not listening to you the American people.
Now, there are numerous reports circulating about intense infighting among the liberal camp with people pointing fingers in all directions. Now, Time Magazine's Mark Halperin even went as far as to write, quote, "Is it hyperbolic to say the Democratic Party is in the midst of a nervous breakdown? I have been covering national politics since 1988 and I don't remember a situation quite like this. The signs of a crackup are everywhere."
And joining me now with reaction are columnist for the Sun Sentinel, Republican strategist Noelle Nikpour, Democratic strategist Steve Murphy. He was part of the Obama campaign media team.
It's not the right-wing media here Steve. This isn't, you know, this isn't Hannity, this isn't Coulter, this isn't Levin or Rush Limbaugh. This is, you know, Mark Halperin. And Mark Halperin is saying, Democrats think they can still use a new cycle and demonize John Boehner and still use class warfare and get mileage out of it and it is not working.
STEVE MURPHY, DEMOCRATIC STRATEGIST: Well, you out to dismiss what Mark has written here just like you dismiss everything else from the elite media because it is wrong. It's absolutely wrong. Do I look nervous? Do I look like I'm having a nervous breakdown? What? Me worry?
Democrats, here is what is going on right now. Democrats are concerned about getting the country on a stronger fiscal footing. Republicans campaigned on that. But now they want to add $700 billion in more tax cuts for the wealthy. That's terrible for the economy and Democrats are fighting internally about what we can could to stop that.
HANNITY: Steve, since Nancy Pelosi's become speaker, we have $5 trillion in new debt. Since the president has taken his position, $3 trillion in new debt. Tax cuts -- raising taxes on small business in the midst of a recession is the dumbest thing you can do if you want to get people back to work. Now Noelle, here's the thing --
MURPHY: By the logic you just used, Sean, just let me respond to that. By the logic you just used, we had these tax cuts the last two years and they have been a disaster. Get rid of them.
NOELLE NIKPOUR, REPUBLICAN STRATEGIST: Well, you know --
HANNITY: So, you want to raise taxes on the American people, OK, that is a big difference. Noelle?
NIKPOUR: Well, you know, it looks like the house that Nancy built is crumbling around her and they should hand out goodie bags at the chamber door for Xanex for all the Democrats because they can't agree on anything and the only thing it is doing is uniting the Republicans and it's going to make it stronger for 2012. And as far as the class warfare promotion, that is something that President Obama and his administration have been doing this whole time. Even Claire McCaskill of Missouri said, well, yes, I guess that in a way, we are promoting class warfare. I mean, and think about, they're targeting, they are actually targeting a group of people that basically are one of the most charitable and they supply jobs. I think the whole thing is wrong and, yes, there is a breakdown. You can call it a nervous breakdown which I thought was a great article by Mark but I think that there is a breakdown in the Democratic Party. It is all over the place. They can't agree.
MURPHY: It's not class warfare. It's deficit warfare. It's debt warfare. We can't afford these tax cuts for the wealthy anymore.
HANNITY: Hey, Steve.
MURPHY: They have been a disaster.
HANNITY: Hey, Steve. Steve, the people you want to raise taxes on are the ones that create 70 percent of the jobs in this country. You could call it at.
MURPHY: It worked in the '90s, Sean.
HANNITY: It is what it is. The top 10 percent pay 70 percent of the taxes, Steve. The bottom 50 percent pay 2.9. How much do you want, give me a number, at what point.
MURPHY: Seventy two percent.
HANNITY: Hang on a second.
MURPHY: Let them pay 72 percent so we can reduce the deficit. Big deal.
HANNITY: At what point do we say enough is enough? At what point do we take away the --
MURPHY: When we get back to a balanced budget like we had before George Bush started these ridiculous policies.
HANNITY: It's George Bush's fault...
MURPHY: Yes, it is.
NIKPOUR: Then why don't you let people that want to pay more taxes just pay more taxes? Look, the wealthy are not to be demonized. In Northwest Arkansas, the Wal-Mart family, the Walton family have a huge Walton Arts Center. They donate --
HANNITY: Hang on a second. Let me ask because this is important. Here we have a White House and I have sources that have been telling me, I have been reporting on this, there is anger, there's finger pointing, there's blaming, there is a disconnect, there is a president that is tone deaf, more concerned about, you know, shooting hoops and playing golf and his Hawaii vacation pending than he is about actually fixing the problems.
Here the Democrats have a very simple thing they have to do here. We are 28 days away from business in this country getting a massive tax increase, 9.8 percent unemployment. Don't you think politically they would be wise enough to realize just even temporarily extend these cuts, get the economy back on track and create jobs because that is what the American people care most about?
MURPHY: The Democrats are in trouble politically.
HANNITY: Noelle, Noelle, Steve, hang on.
MURPHY: I'm sorry, go ahead.
NIKPOUR: You would think that I would do that, and you know, what? The stimulus, wasn't the stimulus designed to help the unemployment rate not go past a certain number.
HANNITY: Good point.
NIKPOUR: I mean what is going on?
HANNITY: Hey, Steve. What have we gotten for two years?
MURPHY: Here is why the Democrats are in trouble politically. We are not fighting hard enough for the middle class. That is what we need to do here.
HANNITY: You didn't answer my question. Wait a minute.
MURPHY: Get rid of the tax cuts for the wealthy.
HANNITY: You had total control of the economy for two years. You spent a trillion dollars. What have we gotten?
MURPHY: Quite frankly, the Democrats over the past two years should have gotten rid at these Bush tax cuts and what we have gotten out of that, we've got...
HANNITY: So they failed. They had the worst defeat since the 1930s.
MURPHY: There was a financial collapse. Come on. Let's be fair to Obama. The situation was terrible when he took office and today we have economic growth. We have to take the next step.
NIKPOUR: Be fair.
HANNITY: Put your pants on, stop blaming Bush.
NIKPOUR: Yes. Be fair to Obama?
HANNITY: He's the president. His policies.
NIKPOUR: Yes. We have given him on-the-job training, Steve. Be fair Obama? He is getting on-the-job training, thanks to the American people. No thanks.
MURPHY: He got on-the-job training for the Republicans. He absolutely did because they opposed every single step and didn't work with them one bit to solve these problems.
HANNITY: Steve. He had both houses of Congress, he got everything passed. And guess what? Like every other time, socialism has been tried it's failed. He is a failure.
MURPHY: Working pretty well in Northern Europe right now.
NIKPOUR: Oh, please.
HANNITY: In Western Europe? Is it working in Portugal, Spain -- is it working good in England, France and Germany?
MURPHY: They're kicking our butts, Sean. Germany is kicking our butts because.
HANNITY: Germany is not too bad.
MURPHY: Germany is kicking our butt. They have a trade surplus. We have a trade deficit. We ought to look at them for more policies, not less.
HANNITY: You are delusional. You're absolutely delusional.
MURPHY: Oh, I guess I'm having a nervous breakdown, Sean.
HANNITY: I think you're right, you lost your mind.
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