Updated

This is a rush transcript from "Hannity," September 1, 2010. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: So with just 62 days remaining until the midterm elections, today's big question is, which party do you trust? Now according to a brand new Gallup Poll, the answer is Republicans on seven out of nine key election issues.

Now the American people say they trust Republicans in Congress more than the Democrats. So we took our cameras to the streets of New York City to see if we got a similar response. Take a look at this.

(BEGIN VIDEO CLIP)

GRAPHICS: Which party do you trust more on... terrorism?

UNIDENTIFIED FEMALE: Republican.

UNIDENTIFIED MALE: Yes. Me, too, probably.

UNIDENTIFIED FEMALE: Republican.

UNIDENTIFIED MALE: Republican.

UNIDENTIFIED FEMALE: Republican.

UNIDENTIFIED MALE: On that one I would say Republican.

UNIDENTIFIED MALE: Republicans.

GRAPHICS: GOP 7. Dem 0. Undecided 0.

Immigration?

UNIDENTIFIED FEMALE: Republican.

UNIDENTIFIED MALE: Undecided.

UNIDENTIFIED FEMALE: Republican.

UNIDENTIFIED MALE: Republican.

UNIDENTIFIED FEMALE: Democratic.

UNIDENTIFIED MALE: Democrat.

UNIDENTIFIED MALE: Republicans.

GRAPHICS: GOP 4. Dem 2. Undecided 1.

Federal spending?

UNIDENTIFIED FEMALE: Republican.

UNIDENTIFIED MALE: Yes, Republican on that, too.

UNIDENTIFIED FEMALE: Republican.

UNIDENTIFIED MALE: Republican.

UNIDENTIFIED FEMALE: Republican.

UNIDENTIFIED MALE: Republicans.

UNIDENTIFIED MALE: Republicans.

GRAPHICS: GOP 7. Dem 0. Undecided 0.

The economy?

UNIDENTIFIED FEMALE: Republican.

UNIDENTIFIED MALE: Again undecided.

UNIDENTIFIED FEMALE: Republican.

UNIDENTIFIED MALE: The Republicans.

UNIDENTIFIED FEMALE: Democratic.

UNIDENTIFIED MALE: I would say Democrat.

UNIDENTIFIED MALE: Republicans.

GRAPHICS: GOP 4. Dem 2. Undecided 1.

Afghanistan?

UNIDENTIFIED FEMALE: Undecided.

UNIDENTIFIED MALE: Probably be Democrat on that.

UNIDENTIFIED FEMALE: Definitely Republican.

UNIDENTIFIED MALE: Republicans.

UNIDENTIFIED FEMALE: Democratic so far.

UNIDENTIFIED MALE: Republican.

UNIDENTIFIED MALE: Republicans.

GRAPHICS: GOP 4. Dem 2. Undecided 1.

Jobs?

UNIDENTIFIED FEMALE: Republicans.

UNIDENTIFIED MALE: Again undecided, neither.

UNIDENTIFIED FEMALE: Republican.

UNIDENTIFIED MALE: Republicans.

UNIDENTIFIED FEMALE: Democratic.

UNIDENTIFIED MALE: I'll say the Republicans.

UNIDENTIFIED MALE: Republicans.

GRAPHICS: GOP 5. Dem 1. Undecided 1.

(END OF VIDEO CLIP)

HANNITY: All right, and joining us now with reaction is columnist, best-selling author, the one and only, Ann Coulter.

All right, Coulter, we got -- what, a 68-year record now for the Republicans in terms of generic ballot in a city where Democrats outnumber Republicans 8-1. That's pretty impressive.

ANN COULTER, AUTHOR & COLUMNIST: Yes. Yes. This is not helping my campaign to try to lower expectations.

(LAUGHTER)

COULTER: It's a stunning poll. But I will say the election is still two months away. And they didn't ask about certain areas where the Democrats are definitely better than the Republicans like -- you know, abasing the United States in front of foreign dictators.

HANNITY: They're winning in that department.

COULTER: They definitely win in that. Also, I'm so sorry I'm out in L.A. and I couldn't see the video you just showed.

HANNITY: Yes.

COULTER: Because one thing that always surprises me about these polls is I really want to see the people that I just heard saying Democrat. Who? I would like to meet the person who thinks Democrats are better on terrorism or Democrats are better on jobs.

I mean through the entire Bush administration, even with 9/11, even with the .com bust, you know, everybody forgets about that, because Bush cut taxes and the economy recovered even with 9/11.

HANNITY: All right. Why --

COULTER: The unemployment rate through Bush's entire term was -- what, it was like 5.2 percent an average for the entire eight years? The lowest the unemployment rate has been since the beginning of the Obama administration was the day Obama took office.

HANNITY: You said something to me that I have been saying. I am concerned about people's expectations growing wildly out of control, and anything short of 100 seat pick-up in the House and a full complete takeover of the Senate is going to be viewed as a massive victory for Obama and a defeat for the Republicans.

COULTER: Right.

HANNITY: I think the expectation game is important. Explain why you do.

COULTER: Yes, this is exactly what the Democrats did in 1998. The Republicans just taken Congress in 1994, you'll recall, for the first time in 40 years. We managed to keep it in '96.

But, you know, you were talking about, what, 50, 60 districts where people, not only have never voted Democrat, their parents and their -- Republicans, their parents and their grandparents have never voted Republican.

So to be able to hold all those congressional districts two more cycles in a row was kind of crazy. But still, Democrats allowed Republicans to build up hope because of the Clinton impeachment.

Republicans ended up, I think, losing five seats in the House in 1998, and instantly the effort to impeach President Clinton was almost abandoned. If you look back at that period -- you know, the -- he was only losing five seats when the average -- the midterm average, he should have been losing like 30 seats.

So don't get your hopes up. It's not a good year for Republicans in the Senate only because of the senators who are up. They are all in very blue states. But it does look like it'll be a pretty good year for Republicans.

HANNITY: All right. What is your advice in terms of -- because, look, I want to see the Republican Party be the conservative party. I want to see them run on conservative principles.

What's your advice to those candidates -- certainly the environment is better than it's ever been. The best it's been in 68 years according to Gallup.

What are the things you want to see them run on, the specific things you want them to say?

COULTER: Right. Well, there are two things from this poll that I think give us a little hint. One is, oddly, the voters are split. I mean it's -- they're more favorable toward Republicans on health care than they've ever been before. But still it's split about 44-44 on who would handle -- Republicans or Democrats -- would handle health care better.

What's peculiar about that is, since Obamacare has passed there has never been less than a majority of Americans who favored the repeal of Obamacare. Right now about 60 percent of Americans favor repeal of Obamacare.

So I think maybe Republicans are not being clear enough about planning to repeal Obamacare.

HANNITY: Yes.

COULTER: Or maybe they could get those health care numbers up. And the other issue is immigration. Overwhelmingly, Americans trust Republicans more on immigration and that's one of those issues that moderates are always saying, let's try moderate our position.

No, the conservative positions are the good positions. Are the ones that they -- that Americans like Americanson . It's the moderate positions they don't like.

HANNITY: Now, look, I don't think it's that complicated. Cut spending, balance your budget, control your borders. Don't build a mosque at Ground Zero, we'll put that as a side issue. National security. You know what, energy independence. You run on those things. This is simple. This is not that complicated.

But, Ann, welcome from L.A.

COULTER: But --

HANNITY: We appreciate you being with us.

COULTER: You can always -- never discount Republicans' ability to blow an election.

(LAUGHTER)

HANNITY: I agree, which is -- we got 62 days to go. Ann Coulter, thanks for being with us.

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