Obama unveils Fiscal Year 2014

This is a rush transcript from "Hannity," April 10, 2013. This copy may not be in its final form and may be updated.

SEAN HANNITY, FOX HOST: Meanwhile, tonight, President Obama finally, 65 days late, has put forward his 2014 budget proposal. Now in a moment, I will be joined by the House GOP whip, Congressman Kevin McCarthy. But first let me get into the details of this budget.

Earlier today, President Obama unveiled his $3.8 trillion plan, immediately proving once again he has no intention of ever getting Washington's fiscal house in order. Instead, he's willing to reach deeper into the pockets of you, the hardworking taxpayers in this country. Watch this.

(BEGIN VIDEO CLIP)

PRESIDENT BARACK OBAMA: Despite all the noise in Washington, here's a clear and unassailable fact. Our deficits are already falling. Over the past two years, I have signed legislation that will reduce our deficits by more than $2.5 trillion. More than two-thirds of it through spending cuts and the rest through asking the wealthiest of Americans to be paying their fair share.

That doesn't mean we don't have more work to do, but here's how we finish the job. My budget will reduce our deficits by nearly another $2 trillion so that, all told, we will have surpassed the goal of $4 trillion in deficit reduction that independent economists believe with we need to stabilize our finances.

(END VIDEO CLIP)

HANNITY: Ah, he's using one of those Washington calculators once again.

Where does he come up with these numbers? And by the way, did you notice "fair share" again and again and again? Now, his plan includes nothing more but spending and taxing. Now Republicans on the Budget Committee, they crunched the numbers. The figures they came up with were downright scary. Over the next ten years, under Obama's proposed budget, over $8.2 trillion will be added in new debt, the opposite of what the president is saying. But that's not all, Obama's plan also would take more money from hardworking Americans, specifically more than $1.1 trillion in brand new taxes. Now the administration already has big plans on how they want to spend the extra money because the disastrous budget proposes $964 billion in new spending.

He will never learn.

Joining me now with reaction for all of this, House Majority Whip, California Congressman Kevin McCarthy. His last two budgets, he couldn't even get a single Democrat, Congressman, to vote for it so we got $1.1 trillion in new taxes. He just got two tax increases in January and now we have $964 billion of new spending. Seriously? That's his budget?

REP. KEVIN MCCARTHY (R-Calif.), HOUSE MAJORITY WHIP: That is his budget.

What's even worse, Sean, is his budget never balances. When people do a budget in their own household, they do a budget so it balanced, so they get out of debt. He adds to the debt more, takes more taxes out of the economy from hardworking taxpayers just so he can continue the spending spree. He never fixes the problem.

HANNITY: He said about George Bush that George Bush was irresponsible and unpatriotic. This was when the debt was $9 trillion, and taking a credit card to the Bank of China in the name of our kids and grandkids and ringing up all this debt. Now we got $16 trillion, over $6 trillion more of new Obama debt, and now he's going to add $8.2 trillion by his own estimate? I mean, when does he think this is going to end?

MCCARTHY: Well, this is the real difference between the president's budget and the House Republicans'. The House Republicans' budget will balance in ten years so we will stop borrowing. At the end of ten years, just the debt of what we're going to pay every year will be more than $700 billion.

That's what you are going to be paying. And that's absurd. How can ever solve a problem? How can you ever invest in the future? How can you have an economy that will grow? He grows government by more than 5 percent.

HANNITY: Alright, we got to deal with another issue here and you know what, somebody's got to say it, I guess I will. Because not only is this delusional on the part of the president, he's showing great arrogance and he's the only one that's fair and balanced in his own thinking in his own mind here, but he's also full of crap.

I mean, can we lay this on the table? Sorry to say, Congressman. You didn't. I did. But wait a minute, he says I reduced the deficit $2.5 trillion. That's total garbage. He's lying to the American people.

Because all these -- they are not cutting spending. They are not cutting back on deficits. He's given us record deficits. How does he, with a straight face tell, this garbage to the American people?

MCCARTHY: I don't know. It's a lot of smoke and mirrors because it never balances. It takes another $1.1 trillion. He didn't even produce it until the House has passed a budget and the Senate passed a budget. So really, why did he produce a budget because he's missed every deadline. No budget that he has ever produced has even got one vote from a Republican, nor a Democrat has ever voted for any of his budgets. That's the sad part about it, and that's why we're in this fiscal mess to start out with.

HANNITY: And to be fair, I mean, you guys came up with, through Paul Ryan, I like the penny plan. I'd like to cut one penny out of every dollar, no increases. But I'm not a Congressman, I don't have any power, I'm just a humble little talk show host. But with that said, you guys have increased spending 3.4 percent a year, every year for ten years, and every Democrat acts like, you know, you're gutting, you're cutting, you're destroying, when you're upping the ante and spending every year 3.4 percent, and you'll get to a balanced budget. This president never gets to a balanced budget.

MCCARTHY: No, and the other thing that's really important here, not what people in Washington say about it, but John Taylor, an economist out at Stanford, he put a modeling system together and he looked at our budget.

You know what he found? The Republican budget would even grow the economy faster, would add another percentage of growth in the next year, and that's what is really important to America. Let's put people back to work. Let's get them working and off the ability to have to need government assistance, but more importantly, being able to buy those homes, pay for their kids'

college, invest in the future.

HANNITY: And what do you think, so there's the president, what was it, "Memphis Soul Night" at the White House last night, and there's Justin Timberlake and there's Queen Latifah and Al Green. And they're having themselves -- by the way, we'll show a video of the president and he's sitting there with Michelle and he's having himself a good time. We're paying for all that. At a time when he's complaining about the sequester, at a time when he's complaining about cuts and furloughs, he's having the time of his life partying with Tiger Woods and vacationing all over the place.

MCCARTHY: Yes, and then he cuts the self-guided tours from the White House because there's not enough money for the people to be able to see their own house. That's absurd. It's what's wrong with Washington and what's wrong with the priorities of Washington.

Here you have Republicans in the House that are putting priorities first to grow the economy, balance the budget, because you know what's really fair to Americans? Not to leave a debt for their children; not to leave a debt for their next generation.

HANNITY: We're robbing from them.

Here's my question, last question, Congressman, because the way the president characterizes you and conservatives and Republicans, you want to kill Granny, you want to destroy the environment and you hate children, especially sick children that you want to just leave to fend for themselves. That's his characterization. But meanwhile, he's accumulating all of this debt, record deficits, and then he lies. The president says he's cutting. He's not cutting. Can you explain how you're going to combat that?

MCCARTHY: Well, the best way to do it is numbers don't lie. Let's put our numbers out front and show his. But what's more importantly, let the outside even study them. We have to continue to fight for this country.

This country is too important. And the one thing this House is doing is we're putting a budget forward that balances. Even the White House will tell you, regardless of all the smoke and mirrors, his budget will never balance.

HANNITY: Sad. You know what? We're robbing those kids blind. Go back and look what he said about President Bush, $9 trillion -- that's $7 trillion in debt ago. Anyway, Congressman, appreciate you being with us.

We'll watch this unfold very closely. Tell those fellow Republicans hold the line, fight.

MCCARTHY: We will.

HANNITY: All right, appreciate it.

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