Is Obama addicted to raising your taxes?

This is a rush transcript from "Hannity," March 1, 2013. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: This is a Fox News alert. Despite dire warnings from president panic, I am happy to report that at this very hour, there are no major delays at airports all across the United States nor is a pandemic gripping the countryside, and day cares, believe it or not from coast to coast, they are still operational at this hour.

Now miraculously all that remains true despite the fact we have arrived at the day when the Obama sequester starts to kick in. Now tonight, we'll have complete coverage of this developing story with former Obama economic adviser, Austin Goolsbee, Charles Krauthammer will joins and also the Ragin' Cajun James Carville.

Plus the man who had the courage to speak truth to power and that, of course, being Dr. Benjamin Carson. He is here live to give us his take on the sequester, the automatic budget cuts beginning to take place in Washington.

But first, earlier today, to no one's surprise, an 11th-hour meeting inside the Oval Office between the president and congressional leaders failed to result in any progress. Why? We do have a stubborn commander- in-chief who is incapable of conquering his obsession, his addiction, raising your taxes and spending your hard earned money.

Now House Speaker John Boehner addressed that issue moments after meeting with the president. Here is what he said.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER, R-OHIO, HOUSE SPEAKER: Let's make it clear that the president got his tax hikes on January 1st. This discussion about revenue in my view is over. It's about taking on the spending problem here in Washington.

(END VIDEO CLIP)

HANNITY: Now not to be upstaged, "The Anointed One" soon after fled to the safe haven that is the press briefing room in order to field some real hardball questions from his friends in the mainstream media, in other words, the state run lap dog media. Take a look.

(BEGIN VIDEO CLIP)

JESSICA YELLIN, CNN CHIEF WHITE HOUSE CORRESPONDENT: To your question, what could you do, first of all, couldn't you have them down here and refuse to let them leave the room until you have a deal?

PRESIDENT BARACK OBAMA: You know, Jessica, I am not a dictator. I'm the president. So ultimately if Mitch McConnell or John Boehner says we need to go to catch a plane, I can't have Secret Service block the doorway.

(END VIDEO CLIP)

HANNITY: No, Mr. President, you are not a dictator but you are certainly not a leader either, because while you want the blame this entire mess on Republicans, the fact of the matter is, the sequester, that was your idea and put back in place way back in 2011, which leads me to my next question.

What have you been doing the past two years? Now we have heard all your apocalyptic prophecies about what will happen because of these budget cuts, which by the way, are not really cuts. So why didn't you do anything to stop them?

Now we here at "Hannity," we actually think we have found the answer to this mystery. It's because our celebrity president has been busy, well very, busy with important other things. Watch.

(BEGIN VIDEOTAPE)

OBAMA, FEB. 19: Congress allows this meat cleaver approach to take place -- it will jeopardize our military readiness. It will eviscerate job creating investments in education.

OBAMA ON "LATE NIGHT WITH JIMMY FALLON"/NBC: Now is not the time to make schools more expensive for our young people.

OBAMA, FEB. 26: Early education like head start and early start would be eliminated for nearly a thousand children.

OBAMA, FEB. 19: Border patrol agents will see their hours reduced. FBI agents will be furloughed.

OBAMA, FEB. 19 & FEB. 26: Federal prosecutors will have to close cases and potentially let criminals go.

OBAMA (singing): I am so in love with you.

OBAMA, FEB. 19 & FEB. 26: Air traffic controllers and airport security need to be cutbacks.

OBAMA, MARCH 1: Many middle-class families will have their lives disrupted in significant ways.

OBAMA ON "THE TONIGHT SHOW WITH JAY LENO"/NBC: This all dates back when we were growing up together in Kenya.

OBAMA, MARCH 1: All of this will cause a ripple effect throughout our economy.

OBAMA ON "LATE SHOW WITH DAVID LETTERMAN": You look sharp.

DAVID LETTERMAN, HOST: You haven't seen me naked.

OBAMA: We're going to keep it that way.

OBAMA, MARCH 1: The longer the cuts are in place the more damage to the economy.

OBAMA, FEB. 26: Congress might allow a series of immediate, painful, arbitrary budget cuts to take place known in Washington as the sequester.

(END VIDEOTAPE)

HANNITY: A just few moments ago, President Obama signed an order to begin the sequester cuts. Joining me now to react to his old boss' inability to avoid this mess, his decision, is the former chairman of the Council of Economic Advisers. He is a currently professor at the University of Chicago, School of Business, Austan Goolsbee, sir, is back with us.

President panic, doom and gloom, apocalyptic. I thought he was going fix this mess. We can cut $44 billion out of $3.5 trillion. Help me out! Beam me up, Scotty!

AUSTAN GOOLSBEE, FORMER OBAMA ECONOMIC ADVISER: I never took you for the jealous type, Sean. You saw Michelle at the Oscars and now you want best editing and best acting Oscar. Is that what this is about? You got a good drama thing going. I'll give you a prize. I'll send you a prize. What do you want?

HANNITY: Wait a minute. We're going to either cut poor kids or disabled kids. This is what he said this week. Let's see, our military readiness, education, energy, early education, border patrol, airport security, doom and gloom. Wait a minute, here is the question --

GOOLSBEE: You change your tune on me, Sean. You remember I was here three years ago, the summer of recovery, which you love to mock. You were willing to blame every traffic jam in America on the repaving of roads from the stimulus. Now when we're actually going to cut a bunch of programs that are going to lengthen the lines at the airport, we're going to cut military readiness. Now you don't want to do it.

HANNITY: How much was money did this president spend in the year 2008, you know the answer to that. How much did he spend?

GOOLSBEE: He wasn't the president in 2008.

HANNITY: Excuse me, 2009. How much did he spend?

GOOLSBEE: He spent only a small amount more than was projected to get spent because of the townturn.

HANNITY: How much did he spend?

GOOLSBEE: Barely more than what was projected.

HANNITY: How much?

GOOLSBEE: Barely more than what was projected.

HANNITY: All right, here is the thing, spending has gone up 20 percent almost across the board under Obama in four years. We have $6 trillion new Obama debt, 20 million more Americans on food stamps, one in six in poverty, now here's the problem. Wait a minute -- this year we are going to spend about the same probably more than we spent last year. Explain to America how that is a cut.

GOOLSBEE: Now wait a second. You are aware that the Congressional Budget Office, which is nonpartisan, has said that over the last 18 months that the deficit has shrunk faster than any time in the history of United States. Government spending is shrinking faster --

HANNITY: This year, if we're lucky, is under a trillion. No president has come that close, but wait a minute. He's given us $6 trillion in debt, but you are not answering my question. This is important. Are we going to spend more money than year than last year or about the same? Is that the average amount we are going to spend?

GOOLSBEE: Significantly less as a share of the economy, much less.

HANNITY: Because we're going spend about the same. It's impossible to inflict this much pain over $44 billion of a $3.7 billion budget. It's impossible.

GOOLSBEE: It's about the Congressional Budget Office says that it will cut the growth rate of the U.S. by about 6/10th of a percent, which you can say is small or big, but most analysts think that will lead the unemployment rate to start rising again rather than falling.

HANNITY: The first four years of a bad economy was Bush's fault. The next four years are going to be the Republicans' fault and the debt is Republicans' fault.

GOOLSBEE: We avoided the depression, do you remember that? We were at the edge of a depression.

HANNITY: Is it immoral -- I think it's immoral -- I'll ask you,to borrow $6 trillion in four years because he accused Bush of being unpatriotic and irresponsible for $4 trillion over eight years. Is it immoral to borrow from our children --

GOOLSBEE: It was unpatriotic to in a boom to run a deficit, if you are an emergency, worst downturn of your lifetime --

HANNITY: He didn't say that. He never said that.

GOOLSBEE: Yes, he did.

HANNITY: No, he did not.

GOOLSBEE: That was during the campaign, I remember this.

HANNITY: But here is the question.

GOOLSBEE: You played the one snippet where he said it was unpatriotic, I told you that was the context.

HANNITY: Wait a minute. He cut the deficit in his first term in half or no?

GOOLSBEE: From what he inherited, yes.

HANNITY: Did he do that?

GOOLSBEE: He is about to in the fifth year, not the fourth year.

HANNITY: The first term is over, Austan.

GOOLSBEE: Yes, but look it was projected to be $1.3 trillion when he came in. It's going to be cut just in half, that is what the CBO just projected. It would be easier if Republicans were willing to do a grand bargain.

HANNITY: Wait a minute. This week, did they not give the president the choice of making the cuts himself? Didn't they offer him that authority this week and he rejected it?

GOOLSBEE: Well, no, not exactly, that was only the discretionary part. If they want to cut social security and Medicare, they should propose it --

HANNITY: Where is the president's budget? We haven't seen a Democratic Senate budget either in four years.

GOOLSBEE: He proposed a budget, the opposed it unanimously, every Republicans in the House.

HANNITY: I want to read it. Can I download it?

GOOLSBEE: Yes, you can. It's on the Office of Management and Budget's web site.

HANNITY: All right, I'm just checking. Maybe they'll actually pass one this year.

Austan, I'm happy to report. There's a Fox News alert, Charles Manson is still in jail as of this hour. We're going to watch it closely throughout the evening.

GOOLSBEE: My daughter had a bloody nose in school today and I'm blaming the Republicans.

HANNITY: It's probably my fault. Probably my kid, go ahead and blame him. He flew to Chicago.

GOOLSBEE: Yours and the sequester.

HANNITY: All right, Austan Goolsbee.

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