This is a rush transcript from "Hannity," October 12, 2012. This copy may not be in its final form and may be updated.


REP. PAUL RYAN, REPUBLICAN VICE PRESIDENTIAL NOMINEE: You see if you don't have a good record to run on, then you paint your opponent as someone to run from. That was what President Obama said in 2008. That's what he's doing right now.


SEAN HANNITY, HOST OF "HANNITY": And that's exactly what the vice-president did during last night's debate. Now, forget about the Obama record, well Uncle Joe did everything in his power to hide from his boss' failures and to do so, he used the left's favorite tactic, and that is divisive class warfare.


VICE PRESIDENT JOE BIDEN: They're holding hostage the middle class tax cut to the super wealthy. The middle class got knocked on their heels. The great recession crushed them. They need some help now. Whatever you call it, the bottom line is people are going to have to pay more money out of their pocket and the families I know, the families I come from, they don't have the money. And they're holding hostage, the middle class tax cut because they say we won't pass, we won't continue the middle class tax cut unless you give the tax cut for the super wealthy. Look, folks, use your common sense. Who do you trust on this?


HANNITY: All right. Joining me with analysis, Fox News contributor Charles Krauthammer. You know, he also said holding hostage, they are down on America, they bet against America. You know, I would imagine that if a Republican said that Charles that they would be accused of questioning one's patriotism.

CHARLES KRAUTHAMMER, FOX NEWS CONTRIBUTOR: Well, I mean, there are two issues here, the media bias which is as sort of constant as the sun rising in the east. You sort of have to go with it because there is no other way. And then there's a fact that when you don't have a record, you have you to do this kind of stuff. But you notice Biden just can't even get his story straight. He's talking about tax cuts for the super wealthy. That's not the position of his administration.

What he's talking about is tax cuts for anybody making over $200,000 a year, that could be super wealthy in his book, but you've got, you know, a couple, a nurse and a firefighter, with a couple of kids and they could be at that threshold, they're calling them the super wealthy. I think it doesn't really work that well. And it seemed as if Biden was making a new policy for them, that they would only be taxing people who make a million dollars or more, which is not the administration's position. And they actually had to walk it back today.

HANNITY: They walked that back today. They were trying to kind of thread the needle on Benghazi. From what I understand, the State Department is furious, as is the intelligence community because they were both thrown down the stairs by Biden, as they didn't tell the truth about Benghazi -- go ahead.

KRAUTHAMMER: Well, that's how these things unravel. Once you start tossing people under the bus, and they also know that a lot of this is simply not true, then you're going to get people who begin to blow whistles, in the intelligence community, perhaps from the embassy, perhaps from the State Department, they're all looking for scapegoats. The real question is who told Susan Rice to go out there and spin that tale? Who gave her the story? Was anybody aware in the White House?

These are Nixonian questions. It is clear she didn't go out there and invent the story of a mob and a demonstration, when there was no mob and no demonstration. So, clearly, they are pretending something here. And ultimately we'll find out. The only thing I'm concerned about is because of the lack of interest in the mainstream press, this could -- they could be -- the administration could drag this out until after Election Day, after which, they don't care. Everything is about Election Day.

HANNITY: Yes. I really liked your analysis last night when you talked about if you were listening on radio or reading a transcript or watching on television. And we spent a lot of time analyzing the bizarre, uncontrollable behavior of the vice-president. With that said, I watched a very smart, very mature, very composed, thoughtful, decent guy that understands the economy, numbers by the name of Paul Ryan. He got a lot of good zingers in last night. And I think everyone was so distracted by the vice-president's bizarre behavior, they didn't pay attention to things like this.


RYAN: Look, if we're hit by terrorists, we are going to call it for what it is, a terrorist attack. They see President Obama and New York City the same day; Bibi Netanyahu is and instead of meeting with him, goes on a daily talk show. The vice president very well knows that sometimes the words don't come out of your mouth the right way.


Was it a good idea to spend taxpayer dollars on electric cars in Finland, or on windmills in China? Was it a good idea to borrow all of this money from countries like China? Here's the problem, they got caught with their hands in the cookie jar turning Medicare into a piggy bank for ObamaCare.


HANNITY: When I went back and watched the debate a second time, Charles, knowing and really paying attention and listening a little bit more deeply and not as being as distracted by Biden, I realized, I thought Paul Ryan did a really good job.

KRAUTHAMMER: Well, that's what I was trying to say last night, if you read a transcript; I think you would probably conclude it was a draw. Each side made their points. There was no way to refute all the other points. I thought the moderator was extremely intrusive. You know, I'd like for once when the moderator says that we have to move on, for one of the candidates to say, why the hell do we have to move on? We're in the middle of a very important discussion. We're going to continue.

I mean, I don't like the way they decide we are going to speak about "x" for so much time. I think the moderator's job is to allocate an equal division of time and that's essentially it. So you couldn't really get into it.

But I think on points, it was sort of even. I think again if you listened on the radio, the reason I think Biden had won on the radio is because he was aggressive. He was on the attack, forceful.

He kept speaking over the moderator and over Ryan, interrupting in a way that put him in control. But then you add the mannerisms if you saw it on TV and clearly it was a loss for Biden because he really looked a little bit a lot out of control at times.

HANNITY: All right, Charles, good to see you. By the way, I think my Yankees will see your Nationals in the World Series. We're not going to be on the same side.

KRAUTHAMMER: No. This could be the one time when you're going to get it completely wrong.

HANNITY: We'll see. Game on. We'll have the bet on that.


HANNITY: Thanks, Charles.

Content and Programming Copyright 2012 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2012 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.