Updated

This is a rush transcript from "Hannity," August 2, 2012. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: With only 96 days remaining until the most important election of our time, Governor Mitt Romney is showing Americans that he is not taking the attacks against him, his wife and even his deceased father sitting down anymore.

Now, in just a moment, we're going to play for you his response in an interview that he did on my radio show, he responds to Harry Reid's attacks on his tax record.

But first, let me remind everyone what the Senate majority leader told the Huffington Post, saying, quote, "His poor father must be so embarrassed about his son."

Now, that disgusting comment was during the same interview in which Harry Reid claimed that an unnamed Bain executive told him that Romney had not paid any taxes for 10 years. And today, he took that unsubstantiated rumor to the floor of the United States Senate. He doubled down. Watch this.

(BEGIN VIDEO CLIP)

SEN. HARRY REID, D-NEVADA, SENATE MAJORITY LEADER: The word is out that he hasn't paid any taxes for 10 years. Let him prove that he has paid taxes, because he hasn't.

(END VIDEO CLIP)

HANNITY: Well --sorry, I was drinking.

(LAUGHTER)

Well, Mitt Romney has had enough. And today on my radio program, he hit back hard. Listen to this.

(BEGIN AUDIO CLIP, "THE SEAN HANNITY SHOW")

MITT ROMNEY, R-PRESIDENTIAL CANDIDATE: Well, it's time for Harry to put up or shut up. Harry is going to have to describe who it is he spoke with, because of course that is totally and completely wrong. It is untrue, dishonest and inaccurate. It's wrong.

So -- so I am looking forward to have Harry reveal his sources and we will probably find out it's the White House.

Look, the Obama campaign is going to do everything in its power to try and talk about anything besides the president's record.

(END AUDIO CLIP)

HANNITY: And this just in, Senator Reid is getting himself back into this mix by responding to Romney in a statement that reads in part, "there is controversy because the Republican presidential nominee, Governor Mitt Romney, refuses to release his tax returns. And as I said before, I was told by an extremely credible source that Romney has not paid taxes for 10 years. People who make as much money as Mitt Romney have many tricks at their disposal to avoid paying taxes. We already know that Romney has exploited many of those loopholes, stashing money in secret overseas accounts in places like Switzerland and the Cayman Islands." Blah, blah, blah.

Joining me now in studio, she's come out of her bunker, hiding, to react to these outrageous examples of the left's rhetoric and a whole lot more. The author of "Demonic: How the Liberal Mob is Endangering America," available in paperback. By the way, beginning this Tuesday, August the 7th.

Ann Coulter. How are you?

ANN COULTER, AUTHOR AND COLUMNIST: Great! So good to be here.

HANNITY: You know, I have an unnamed source that you didn't write your book, that you weren't born on the day you said, that you don't live where you said -- what is this?

COULTER: I have an unnamed source in Kenya who says that Obama was born in Kenya. I mean, this is the order of what they're doing. You won't -- they want the tax records because this is how Obama wins all his elections, as I described today. It's always by default. He takes out his opponent by going into secret, sealed divorce files, medical records. In his very first race --

HANNITY: Explain this. All right. This is important.

COULTER: His very first race, he wanted to take the place of Alice Palmer. I can even put this in the column. I have a word limit. They persuade her not to run for her own seat for the Illinois State Senate by raising her breast cancer treatments. She decides to run, anyway. So, they get her disqualified by not having enough signatures.

Then when he is running for the Senate, he was up against Blair Hull, a multi-millionaire investment banker. Blair Hull was way ahead in the polls, and what happens? David Axelrod's ex-employer, The Chicago Tribune, pushes the story that Blair Hull's ex-wife had accused him of abuse and had gotten a protective order. This becomes the whole focus of the campaign. And suddenly, Blair Hull falls behinds, Obama wins the primary.

Then Obama is up against that amazingly attractive Republican Jack Ryan, Harvard law, Harvard business school , Dartmouth, Catholic, he went worked for Goldman Sachs, made hundreds of millions of dollars and then left it all in his 40s to teach in an inner-city school in Chicago. But he did have one problem. He was divorced. And so, once again.

HANNITY: It comes out.

COULTER: He released his tax records. He released his divorce records. The one thing that both he and his wife wanted under seal were their custody filings. He accused her of having an affair. She said he took her to sex clubs and that drove her into the arms of another man. So the sex club allegations come out, which he denied at the time. But they come out and five days later, Jack Ryan is knocked out.

And who does Obama end up running against? Alan Keyes, great man, no political aptitude for running for Senate. And that's how Obama became a senator.

So, you know -- look at what McCain -- the New York Times had on its front page rumors about an affair that they never got any substantiation for. You will also recall, Sarah Palin and Todd Palin, there were the rumors about their marriage. There was Herman Cain.

HANNITY: There is an important follow-up here.

COULTER: The attacks on Herman Cain were traced directly back to people David Axelrod knew, making hazy accusations against an actual American black running for -- unlike the Kenyan -- because I hear it on good authority. This is how Obama wins. So, his secret plan --

HANNITY: Do you have any other unnamed sources you want to quote on the program?

COULTER: His secret plan for winning this campaign is for the Romneys to divorce before the election.

HANNITY: All right. Here's -- but this is the key follow-up question to all of this. Because, you know, if you listen to NBC, it's about dressage and the $900 shirt that Ann Romney had.

COULTER: Right.

HANNITY: Not the $6800 jacket that Michelle Obama was wearing at Buckingham Palace.

COULTER: Or the $600 gazillion deficit this president has given us.

HANNITY: Fair enough. But this is what they -- a felony, war on women, Ann Romney never worked a day in her life.

COULTER: Right.

HANNITY: And the list goes on.

COULTER: Right.

HANNITY: This is all they've got. It's all related to the fact that he can't run on his record. But here's the question. Does this work? They got class warfare distraction, attacks, surrogate attacks. We had a surrogate say Romney was a racist the other day.

COULTER: Right.

HANNITY: OK. So, do these attacks have the potential of working?

COULTER: Not with so many people unemployed. I mean, the Obama campaign message is, you can vote for the guy who put millions of people out of work, quadrupled the deficit, wrecked American health care. Or you can vote for that really mean guy whose wife owns a horse.

HANNITY: Yes. All right. Let me --

(LAUGHTER)

That's true. Let me show you the latest MoveOn ad and -- just one of the many negative ads that are out there. Let's roll this tape.

(BEGIN VIDEO CLIP)

UNIDENTIFIED WOMAN: My name's Rafalca, the Romneys' dressage horse. You might have seen me executing leg yields and flying changes. How do I pull off such grace and athleticism while looking so good? Maybe it's because the Romneys spend $77,000 per year on my upkeep.

GRAPHIC: $77,000 = Almost Twice the Average American's Income.

UNIDENTIFIED WOMAN: And after Mitt Romney repeals health care and ships your job overseas, I daresay your life will not be nearly as pampered as mine. After all, you're not one of his horses.

NARRATOR: MoveOn.org Political Action is responsible for the content of this advertising.

(END VIDEO CLIP)

HANNITY: Here is the interesting to me -- and this is where the NBC attacks just crossed the line -- is that, you know, Ann Romney has MS. And that's the reason she got into horses. It's therapeutic for a lot of people.

COULTER: Well, more over --

HANNITY: Yes.

(CROSSTALK)

COULTER: He's a rich man. He hasn't wrecked the economy. He hasn't put a million people out of work. And by the way, there are a lot of ads with horses. The other one shows the other end of the horse saying, I'm Barack Obama and I approved this ad, all over the place these horse ads.

HANNITY: You sure it wasn't a donkey?

COULTER: Other end of the horse.

HANNITY: I'm just checking. All right, let me --

COULTER: But, you know, back to the tax records, Romney should absolutely not release these tax records. This is outrageous, we know exactly what they're doing.

HANNITY: Obfuscation.

COULTER: Because this is -- it is not just that. This is how they win, Obama wins -- it's like his signature move. This is his modus operandi, unleash -- somehow get unsealed, sealed records and then make a big deal out of them, even if there is nothing there. They have already tried to do it with the first two years of tax filings Romney didn't release.

And you notice how that just disappeared from the news. All we find out was that Romney paid millions of dollars in taxes and gives a lot to charities. Why didn't we get the 10 years of -- of tax filings by Teresa Heinz Kerry?

HANNITY: Great point.

COULTER: I mean, they say, oh, well, she's the wife of the candidate. Well, she was supporting the candidate. He was a gigolo. His tax returns are no more interesting than Seamus the dog's tax returns.

HANNITY: He was a gigolo?

COULTER: Yes. She was supporting him. Why didn't we get her 10-years --

HANNITY: That makes him a gigolo?

COULTER: Yes. He's always supported by women, including this multi-millionaire wife --

HANNITY: All right. I am not responsible for the trouble you are going to get in.

COULTER: I am stating facts! He was supported by his wife.

HANNITY: That doesn't make him a gigolo by definition.

COULTER: You are getting off the subject here. Why didn't we get 10 years of Teresa Heinz Kerry's tax returns?

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