This is a rush transcript from "Hannity," July 11, 2011. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: As conservative syndicated columnist Pat Buchanan points out, the GOP has become a target of some good old fashioned name calling from liberals, all because they are standing their ground on the debt ceiling debate. Just listen to what editor-in-chief of The Daily Beast and Newsweek Tina Brown calls Republicans.


MIKA BRZEZINSKI, CO-HOST: What was the answer to my question about who the hostage taker is, Willie?

UNIDENTIFIED MAN: Sounds like Pat's boys.


TINA BROWN, EDITOR-IN-CHIEF, THE DAILY BEAST: I think they're the suicide bombers in all of this.


HANNITY: Suicide bomber. While Washington Post columnist Richard Cohen writes quote, "The Grand Old Party, so named when it really did evoke America, has so narrowed its base that it has become a political cult." The New Republican says, that quote, "The GOP's Hezbollah wing is now fully in control." And even The New York Times so-called conservative columnist David Brooks says, quote, "If responsible Republicans don't take control, independence will conclude that Republican fanaticism cause this default. They will conclude that Republicans are not fit to govern and they will be right."

Fanatics, a political cult, suicide bombers, terrorist organization. Has the left finally taken its scare tactics one step too far?

Joining me with reaction, the former communications director for the Republican National Committee, Doug Heye, and Democratic strategist Steve Murphy.

All right. Steve, I'm just going to start coming out referring to liberals as Hezbollah, terrorist organizations, suicide bombers and cultic.

STEVE MURPHY, DEMOCRATIC STRATEGIST: Not your style. Not your style.

HANNITY: Forget about not my style. You know what I'm sick and tired, Steve?

MURPHY: You don't like it why would you do it? You don't like it. I don't like it either. That's not the right way to have this.

HANNITY: All right. You don't like it either. But if the left keeps doing it. The left keeps attacking viciously, Sarah Palin, Michele Bachmann. Here's the problem, you say it, a couple other Democrats say it. It goes in passing. It doesn't get noticed and it keeps happening.

If a conservative says it, they get fired, their advertisers get targeted. Because liberals that can say anything but free speech doesn't exist for conservatives in the media any more, that's the problem.

MURPHY: David Brooks said it, he didn't get fired. He's a RHINO now by the way, Sean.

HANNITY: David Brooks has never been a conservative.

MURPHY: Look, I'm going to say what I really feel about this debate on the debt limit. I think Republicans are being irresponsible now. I think using analogies like Hezbollah or terrorists or suicide bombers or Hitler or anything like that, that doesn't do anybody any good.

HANNITY: Steve, you know what is irresponsible? I'll tell you what's irresponsible. Bankrupting the country. You know what is irresponsible?

MURPHY: That's what the Republicans are going to do.

HANNITY: Excuse me. For people paying 50 percent of their wages in income and then getting beaten over the head, called selfish and greedy. Half the country doesn't pay taxes. And Doug, one in seven Americans, thanks to the poverty programs of Obama and Democrats, need food stamps to survive. That to me is far worse.

DOUG HEYE, FORMER RNC COMMUNICATIONS DIRECTOR: Absolutely. And, you know, what really demonstrates to me how the tax the left is from the reality America is that Richard Cohen quote, talking about how our base has shrunken. Let's go back to 2006 and 2008, when Democrats were saying that we were a white southern male party. Then we started with Scott Brown and Chris Christie, now we've gotten Nikki Haley, we've got Tim Scott, we've got Allen West, Susana Martinez. This is a party that's growing. And if Democrats think that is shrinking, that is fantastic for us and we'll just keep on trucking.

HANNITY: You know what? I got to tell you. From purely, a political standpoint, you know, if the president and his party think class warfare is going to get them over the finish line while economic, you know, while Obama accumulates five trillion in debt, while unemployment is at 9.2 percent, while 17 percent of the population is not working, because his policies have failed. If you think that's going to work, and I don't think you do Steve, then you're going to see the destruction of your party, at least in the short term. Why don't they substantively try and create jobs in this country and unleash the entrepreneurial spirit?

MURPHY: Well, Sean, let's be honest about what the Republicans in Congress are walking away from here. The Democrats, Barack Obama is willing to do about $3.2 trillion in cuts.

HANNITY: No, he's not.

MURPHY: Wants to have eight -- yes he is.


HANNITY: A hundred billion in new taxes!

MURPHY: One fourth of all the deficit reduction that he's looking for approximately from all reports is from taxes. And, you know what else is silly about this whole thing?

HANNITY: According to reports. The liberal media?

MURPHY: The Republicans are willing to let Moody's and S&Ps downgrade our debt, they're willing to let the stock market lose a trillion dollars. They're willing to let home mortgages goes high, the variable rate mortgages.


HANNITY: This is nonsense.

MURPHY: All for a tax cut that's going to expire at the end of next year, anyway.

HANNITY: Fifty percent of Americans pay no federal income tax, half. One in seven Americans are on food stamps.


MURPHY: That's the way Republicans when they passed the amendment designed it.

HANNITY: You know, Doug, when I didn't --

MURPHY: That's a Republican --

HANNITY: Hang on a second. Listen, I drove $200 and $300 cars for years. I worked in construction. I washed dishes. I waited tables, I tended bar, I was banging nails, I was painting houses. And you know what, Doug? I was glad rich people hired me. Rich people went out to dinner. If rich people don't by yachts, remember the yacht tax, if rich people don't buy planes, all the demonization of private planes. If rich people don't go on expensive vacations, guess who is going to suffer? All the people the Democrats seem to care the most about. They are killing the opportunity for people to succeed.

HEYE: You know, absolutely, Sean. Like any good North Carolina boy like I am. My first job was in a barbecue restaurant called Mr. Barbecue. And I'll never forget getting that first paycheck and seeing how much of my money was taken away from me before I even had a chance to get it.

But I thank God that I had great people who hired me and employed me. And we need more people to do that to drive our economy. That's what Marco Rubio was just talking about. Let's compare it to divisive rhetoric that we saw from another Florida politician, Alan Grayson. Overheated rhetoric is like an overheated radiator, you are just blowing steam and you don't accomplish anything.

HANNITY: Steve, I don't think liberals like yourself are going to be happy until government gets nine cents out of every dollar, "rich people," defined by $250,000 a year small business job creators pay 90 cents out of the dollar, give it to the government, state, local, federal.

MURPHY: Sean, I'm not happy that hedge fund managers pay 15 percent and I pay 34. That's what's wrong with our tax code.

HANNITY: I pay more than both of you put together, how do you like that? Is that fair, Steve?

MURPHY: No, you are at the top level.


HANNITY: Number two, I pay fully 55-plus percent of what I make, state, local, federal.

MURPHY: Get a new accountant, Sean.


MURPHY: Become a hedge fund manager.

HANNITY: Not a new accountant.

MURPHY: You sure do.

HANNITY: I pay my taxes. Obama or the IRS will put me in jail.

MURPHY: That's a good point.

HANNITY: You would like that, wouldn't you? You'd bring a cake with a file, wouldn't you?

MURPHY: I'd bring a cake.

HANNITY: Thanks, I want the file. I don't want the cake. All right, guys.

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