This is a rush transcript from "Hannity," July 26, 2012. This copy may not be in its final form and may be updated.
SEAN HANNITY, HOST OF "HANNITY": And tonight, if President Obama and Senate Democrats had their way, the taxes of small business owners and job creators all across America would be on the rise. Now, yesterday, without the support of a single Republican, Democrats voted to ram through their proposal right through the Senate. And that was moments after Majority Leader Harry Reid successfully killed the GOP plan that would have extend the Bush-era tax cuts for everybody that pays taxes. So, what does this tell might mean for you, your families, your employers? Well, if the Democrats remain hell-bent on raising taxes on people who actually stimulate the economy and create jobs, and an agreement is not made before January 1st, well, taxes will be up on each and every American. And while 'taxmageddon' approaches back home, Governor Mitt Romney was at Ten Downing Street in London visiting with British Prime Minister David Cameron. Now, tomorrow, Romney will be on hand for the opening ceremonies of the Olympics. And then he will head to a place that President Obama has never found the time to visit while in office. That's Israel. And joining me now with a preview of that trip and some insight into the tax debate that is now raging in Washington. The House Majority Leader, Congressman Eric Cantor. Congressman, welcome back sir.
REP. ERIC CANTOR, R-VA, HOUSE MAJORITY LEADER: Sean, good to be with you.
HANNITY: All right. Explain what happened. Because there is a plan in the house. There is a plan in the Senate. In the House, you voted tax cuts for everybody. President at one time said, don't raise taxes during a slow economy. What happened in the Senate?
CANTOR: Well, today, Sean, I think for the whole world to see, we saw Harry Reid and the Democrats vote overwhelmingly to raise taxes on America's job creators. You know, this is simultaneous with a Gallup poll that was just released today where 35 percent of the nation's small business people don't have any confidence whatsoever in the economy. And so, if you've got business people lacking confidence, you know, you really have to ask yourself, why does it make sense to raise taxes?
And this is what we have said over and over again. You've got an ailing economy. You ought not be raising taxes on job creators. Secondly, you've got a situation where the spending is still out of control in Washington. Harry Reid and Barack Obama refuse to do anything about that. So asking people to pay more money into Washington so that they can't keep more what have they earn actually makes matters worse and digs the hole deeper. So again, I think you are going to see this underscores Sean, what's going on this election season and in November, you know where the American people are going to have a real choice. And they're going to have to respond to the question they are asking themselves, what direction they want this country to go in? Do we want bigger government, higher taxes and Washington making all the decisions? Or do we want to empower our small businessmen and women to get about the business of investing and creating value and actually building businesses, even though the president doesn't think that it's the small business people that build the businesses.
HANNITY: Well, let me go to that, because you know, you didn't build that -- a lot of smart people; a lot of people that work hard. Because I think this is one of the two biggest gaffes that the president has now made in the last two weeks. Let me play this one first and get your reaction. And what does it tell you about the president, coupled with his failed economic policies? Let's roll this.
(BEGIN VIDEO CLIP)
PRESIDENT OBAMA: If you are successful, somebody along the line gave you some help! There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you got a business, you didn't build that, somebody else made that happen.
(END VIDEO CLIP)
HANNITY: And you know, my mother changed my diapers and she gave me these horrible-tasting, you know, smashed peas and carrots, without her, I wouldn't be here Congressman.
CANTOR: I mean, and so that's why Mitt Romney actually is the right man at the right time to become the president of the United States. Because he is testament to the fact that he does build businesses. He has built businesses. He understands what this country's all about. This country's about economic freedom, where ordinary people can do extraordinary things no matter where you come from. And that's frankly what the president just doesn't get.
HANNITY: Yes. What do you make of this comment -- now, it's sort of like if you read it and some Democrats will say, well, you are cropping this, you're cutting out the context, he was talking about Bill Clinton. I'm like, first of all, Bill Clinton, you know, was working with the Republicans and the era of Big Government was over. And the end of welfare as we know it. Bill Clinton didn't run a $5 trillion deficit in three-and-a-half years. So, they are trying to sort of parse the words that he said here. But he was talking, we tried our plan and it worked. Let me play it for you.
(BEGIN VIDEO CLIP)
OBAMA: Just like we've tried their plan. We've tried our plan and it worked. That's the difference.
(CHEERS AND APPLAUSE)
That's the choice in this election. That's why I'm running for a second term.
(END VIDEO CLIP)
HANNITY: I wonder if he's referring to Clinton -- excuse me -- he's no Bill Clinton. And two, we tried his plan for three-and-a-half years and he said it would be a one-term proposition if it didn't work. And it hasn't.
CANTOR: You know, Sean, there has been nothing more extreme than this president's agenda for the economy. As we've seen, the red ink is just flooded here in Washington. This place is awash in red ink. And awash in regulations. I mean, this week, and the U.S. House of Representatives, we focus on the fact that we have to cut the red tape. It's too hard to be in business right now.
And if the number one issue is to grow the economy, if the number one issue is to engender confidence on the part of the American people and the entrepreneurs, the last thing you need is Washington encroaching on every sector of the economy the way it is. And I don't care what the acronym is, just pick one, there's a federal agency in this town that is doing damage to the small business person right now.
HANNITY: All right. Let me throw you a few statistics and ask you how bad it would be if Barack Obama were to win a second term. Because, you know, we have $5 trillion in debt that he has accumulated, new debt. He called Bush unpatriotic and irresponsible for $4 trillion in debt in eight years. We now have literally 46 million Americans that are on food stamps. 40 million Americans that are in poverty. The food stamp number's gone up 15-plus million. And then we've got as a percentage of GDP deficit spending at the highest level since World War II. If we continue down that path for four more years, what would happen to the American economy?
CANTOR: Sean, I am fearful that if we continue down the path of the Obama agenda, we'll be living in a country we do not recognize. That's why this election's so important. And frankly, the American people have a huge choice of him-- are we going to go in the direction that Mitt Romney is laying out for this country? A direction in which small business people, entrepreneurs, working families can live the dream, that is, that they can go about building and earning their success and provide their families a better life?
Or are we going to go and empower Washington to grow ever bigger to take more hard-earned money of the people that actually make it and start to make decisions for working families, businesses across the board? Which one is it? And I believe frankly the American people understand that our country is about freedom. It's about economic freedom, individual freedom. And, you know, it is the Obama policies that are just anathema to the concepts of limited government and more individual freedom. And so, again, I would say, Sean, I cannot recall a time in which the matters are more urgent and the fact that folks will really going to be put to the test here when we come to November, I'm confident of the outcome that we will elect Mitt Romney as the next president of the United States and win the Senate and maintain the House, so we can get this country back on track.
HANNITY: All right. Congressman, good to see you again as always. Thanks for being with us. I appreciate it.
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