This is a rush transcript from "On the Record," April 9, 2012. This copy may not be in its final form and may be updated.
GRETA VAN SUSTEREN, FOX NEWS HOST: Since the day that President Obama signed the national health care law Congresswoman Michele Bachmann has been on the warpath fighting it. She thinks it's lousy for the country. She is a former tax lawyer, so what does she think of it being quietly sent to the IRS?
VAN SUSTEREN: Congresswoman, nice to see you.
REP. MICHELE BACHMANN, R-MINN.: Good to see you. Great to be on.
VAN SUSTEREN: All right. No secret you don't like the president's national health care. But I'm curious, $500 million that is transferred to the IRS to implement programs, including the individual mandate. How does that happen -- is it outside the ordinary appropriations process or is this the normal way it's done?
BACHMANN: No, it is outside the normal appropriations process. But it is part of the ObamaCare legislation. In fact, it's far more than that, Greta. In the ObamaCare legislation, $105,464, million was put into that bill for the overall implementation of ObamaCare. It will go to a lot of things and this year, the Obama administration can't wait to shove half a billion dollars in the coffers of the IRS because they are everything they can to get Obamacare up and running just in case the Supreme Court decides to make it go away.
VAN SUSTEREN: I am particularly annoyed about the way money is spent in Washington. So I'm curious, maybe you are not the right person to ask, but this $500 million to implement the mandate and other things, and of course we don't know what will happen with the Supreme Court, how do they figure out the numbers? How do we not know it's $200 million or $700,000? How do they come up with the numbers?
BACHMANN: I'll tell you what is more profound. When the Obamacare legislation passed, if you did a Lexus Nexus search or a Google search, you won't find one newspaper story about the $105,464 million in implementation money in Obamacare. Nobody even knew that that money was in there. How can Congress pass a bill that has $105 billion in it and nobody knows about it? That's how out of control it is.
The $500 million transferred to the IRS, they can do this. The Obama administration can do it, it's in the Obamacare. It's legal. But what people need to realize is it isn't just the Health and Human Services Department they'll have to deal with in the future. Its' the IRS will breathe down their neck when it comes to healthcare. So give me a break. When people have a problem with the healthcare, are they going to pick up the phone and call IRS for help? But it's the IRS who are the enforcers in the future when it comes to the healthcare debacle. That is why Obamacare has to be repealed. It has to go.
VAN SUSTEREN: I don't think you have a lot of people big fans of the IRS as either side of the aisle as a matter. So they may not pick the best government agency to be part of this.
But let me turn to Vice President Biden. He's hitting the campaign trail in New Hampshire. He will talk about the Buffett rule. I know you are opposed to it. Why are you opposed to it? It only affects a very small portion of Americans. You have to earn $1 million and you have to pay 30 percent of your income earned or unearned, I guess.
BACHMANN: That's right. I am a former federal litigation attorney. One thing I know about the tax law is the top one percent of the income earners in this country pay 40 percent of all taxes -- one percent of the Americans pay 40 percent of all taxes. The interesting this is when they want to put the rule in effect, that is effectively going to wipe out all exemptions, all deductions from these people.
Now, it's really important to know, too, that the top one percent of the income earners pay 30 percent effective tax rate now. That's because a lot of their income comes from investment income. They pay 30 percent because we have the highest corporate income tax rate in the world. But now President Obama plans to double the rate of investment tax, called capital gains tax. If you combine it together we will see higher than 30 percent.
What President Obama is engaging in right now, Greta, unfortunately, is dividing the country based on how much money we make. Instead of focusing on that, what people call class warfare, we should be focusing on how do you create more jobs and how do you have higher paying jobs? The way you do that is job creators keep more of the money so they can put it in the jobs. He is going to create taxes on how you create jobs, and that means lower jobs, fewer jobs, and lower wages.
VAN SUSTEREN: I am looking at the numbers. If you raise the revenue on that group, the Buffett rule, that you raise about just under $47 billion a year, $47 billion. Our deficits are $1 trillion a year. So no matter which way this falls, this Buffett rule is going to be like a drop in the bucket to try to solve our more profound problem structural problems in the economy, in the way we collect taxes. It's a far bigger problem than this.
BACHMANN: You're exactly right. What this will do is give President Obama bragging right that he is somehow kind to the middle class by sticking it to the wealthy. But the fact is it's the wealthy who are the job providers in this country. What all of us need to recognize is under President Obama's policies, come January 1, 2013, less than a year from now, you are going to see a giant sucking sound of jobs and hundreds of billions of dollars of investment money leaving the United States, going to India, China, South Korea, Brazil, places where they are changing their tax policy to be tax friendly for job growth. Shouldn't we be to best tax climate to create jobs? Instead under Obama we have the worst tax climate to create jobs.
VAN SUSTEREN: We certainly need to do something, but I'm going to take the last word on that. Congresswoman, nice to see you. Thank you for joining us.
BACHMANN: Thanks, Greta. It was a pleasure. Thanks again.