Updated

This is a rush transcript from "Hannity," November 30, 2017. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: All right. Thanks, Tucker. Welcome to "Hannity."

A huge breaking news tonight. A Fox News alert. Stunning news tonight out of San Francisco. The illegal immigrant accused of killing Kate Steinle found not guilty. We know he had seven prior felony convictions. He was now facing, get this, his sixth deportation. Now believe it or not, his attorney is now blaming Donald Trump. We're going to explain how sanctuary city laws and policies killed Kate Steinle tonight.

But first, the GOP is now on the verge of keeping one of their big campaign promises, a crucial tax reform vote in the Senate coming as early as tomorrow. This important piece of legislation, well, not perfect, it will bring jobs back jobs, it will slash rates for corporations, for middle class Americans, increase take-home pay for millions of American men and women.

But predictably, the obstructionist leftist is now playing class warfare politics, of course, with your paycheck. We'll explain in detail.

Also breaking tonight, it is a nightmare over at NBC News. Their star anchor, Matt Lauer fired after disturbing claims of sexual misconduct. Tonight, the question, what did NBC executives know? What did other hosts know and when did they know it? It also appears the chaos over at the peacock network is really getting to liberal Joe Scarborough.

He is now lashing out at President Trump like never before. We will show you his complete and total, emotional national meltdown.

Plus, new sexual misconduct allegations against senator grope himself, Al Franken. And there are growing calls for Democratic Congressman John Conyers to resign, including one of the biggest flip-flops in political history from Nancy Pelosi. All of that in tonight's important breaking news opening monologue.

Our top story, sad breaking news tonight in the Kate Steinle murder case. The illegal immigrant, Garcia Zarate, who killed Kate Steinle on that pier in San Francisco was acquitted just a short time ago of murder and manslaughter charges before he shot Steinle.

Now get this: He was released from a San Francisco jail despite a federal request that he be held for his sixth deportation. He already had seven prior felony convictions. Let me tell you something the mainstream media will never tell you tonight: It was San Francisco, sanctuary city policies that killed Kate Steinle. They did not obey the law. They follow these ridiculous liberal policies and because of their stupidity and their, quote, "form of justice" and caring more about the rights of illegal convicted felons, tonight Kate Steinle is dead and her family has received no justice.

Here's the attorney for the illegal immigrant right after the verdict, taking a shot at the president. Really?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: For those who might criticize this verdict, there are a number of people that have commented on this case in the last couple of years. The attorney general of the United States, the president, and vice president of the United States. Let me just remind them that they are themselves under investigation by a special prosecutor in Washington D.C., and they may themselves soon avail themselves of the presumption of innocence and beyond a reasonable doubt standard. And so I would ask them to reflect on that before they comment or disparage the result in this case.

(END VIDEO CLIP)

HANNITY: I want to go through some of the details tonight, pay very close attention here. Now, this family of -- the Steinle family have been waiting more than two years for this justice. Now, Kate Steinle, she was arm in arm with her father on that pier. Here you have a guy, homeless at the time, claimed he found the gun with a piece of cloth under his swivel chair at a pier. And then he says he picked it up. He accidentally fired it. It ricocheted and hit Kate Steinle in the back.

Well, we know a lot more about Mr. Zarate. And that is in fact because he had little experience with his guns, is what his attorney was saying. But we did find out some other facts tonight. For example, he had been requested by the federal government that in fact he be -- that he be handed over to federal authorities. They didn't do it. The reasonable they didn't do it is because of the sanctuary city laws that are in San Francisco. The same laws now that have been adopted by the governor of California, Jerry Brown, in this particular case. You look at his track record, you look at all of the deportations, you look at all of the felony convictions.

Tonight, America has to ask a very important question. Tell us, tell us what good comes out of a sanctuary city law? People that never respected our laws and our sovereignty come into this country again and again and again and again. Six times after being deported? After all of those felonies? And an American, young woman is killed with her father walking on a pier in San Francisco?

We're going to have a lot more. Michelle Malkin joins us in a minute.

Now, with the tax vote in the Senate looming, many are wondering tonight what tax reform could mean for their bottom-line. Here are the statistics. As of now -- this is important to every forgotten man and woman that voted in this election -- this bill increases the minimum deduction to $12,000 for individuals. Twenty four thousand dollars for joint filers. It ends the individual mandate penalty under ObamaCare -- thank goodness. It removes the alternative minimum tax. Additionally, the top marginal rate will be lowered -- not enough in my mind -- 38.5 percent.

Perhaps the most crucial part of this bill could be in the dramatic reduction in the corporate tax rates from one of the highest at 35 percent in the world to just 20 percent. And of course, the 10 percent tax on repatriation for multinational corporations, foreign cash. That means trillions potentially coming into this country and factories and manufacturing centers being built for the forgotten men and women in poverty, out of work.

Now the question is, what does this mean for you? Here's some examples the mainstream media will not show you. According to estimates, a middle income family of four at around $70,000 in earnings, they can receive up to an estimate 60 percent tax cut. A single parent with around $40,000 in earnings will likely see at least a 50 percent reduction in their taxes. This is real money in hardworking Americans' pockets. No, the bill is not perfect -- I would have preferred dramatic across the board cuts like in the Reagan era -- but it is an important starting point. Lowering the corporate rate, spurring economic growth, for decades hopefully to come.

Listen to the gloom and doom of Democrats. This bill will destroy the middle class and end America as we know it. Watch the petty display of predictable class warfare from earlier today.

(BEGIN VIDEO CLIPS)

SEN. CHUCK SCHUMER, D-N.Y.: It's astounding. If the president and Republicans in Congress set out to pass a middle class tax cut as they claim, if that's where they set out, this bill completely misses the mark.

SEN. ELIZABETH WARREN, D-MASS.: They keep pushing it because it's a pay-off to their big donors.

If the Republicans ram this thing through, they're going to explode the debt, they're going to raise taxes on hard working families.

SEN. BERNIE SANDERS, I-VT.: If the deficit goes up by 1.4 trillion, I believe without any doubt that the Republican Party will come down here to the Senate and go to the House and say my goodness, we have raised the deficit and in order to deal with that, we have got to cut Social Security, Medicare, Medicaid, nutrition, education, affordable housing and every program that is important.

(END VIDEO CLIPS)

HANNITY: You have to remember, for almost a decade those same people you see bashing this tax reduction, this tax reform, are the same politicians that gave us the, quote, "economic wisdom" of Barack Obama. But you know, what about these Democrats? What they're not going to tell you is this. What happened under the Obama economy? They'll never tell you how bad it is.

We told you during the last election, under Obama, the slowest economic recovery from a recession since the 40s. Eleven million more Americans on food stamps. Eight million more in poverty. A homeownership rate at its lowest in 51 years. Fifty million Americans in poverty, an increase as I said of eight million. And get this, Obama, the only president in history of this country never to reach three percent GDP growth in the country.

Meanwhile, since President Trump was elected, third quarter GDP just yesterday, was revised upward, 3.3 percent. The highest rate in three years. In October, 261,000 jobs were created. Nearly two million now since President Trump was elected. Unemployment, a 17-year low. Consumer confidence, 17-year high. Median existing home prices for all housing types in October, 2017, up 8.7 percent since January. The stock market today another record, all-time record.

Based on that alone, who do you trust? The Obama sycophants that gave us this failed policies? Their cohorts in the liberal media? Their friends on the left side of the aisle? They want this bill to fail when they failed all of us for eight years? Or what about this president that has literally put confidence in the heart of American corporations by getting rid of Obama regulations and red tape.

We now have seen what economic growth could mean and what an economic turnaround could be. This bill must pass. Our economic future depends on it. We're going to discuss the tax bill also later on in the show. And also bring you a vote. In fact, we'll update you any votes that happened in the Senate throughout the night.

Now, we turn our attention also to the ongoing nightmare that is NBC News today. It is been one day since "Today" show host Matt Lauer was abruptly fired. Now multiple women have come forward with shocking allegations of sexual misconduct and abuse against the longtime morning host. Some of these allegations include exposing himself to a staffer, demanding that she perform a sex act. Giving an adult toy as a present along with a note suggesting that it would be used in front of him. And one instance where Lauer summoned a married staffer to his office where he had sex with her until she passes out? And then Lauer reportedly took the woman to see a nurse?

Earlier today, Matt Lauer has issued an apology with a caveat stating that some of the allegations are, quote, "untrue or mischaracterized." Now, more damning tapes also surfaced indicating that Lauer's misconduct was going on for a long while and may have been an open secret at the Peacock Network.

Take a look at this clip from Lauer's former co-host Meredith Vieira where she talks about his in office, bag of sex toys. Watch this.

(BEGIN VIDEO CLIP, "THE MEREDITH VIEIRA SHOW"/NBC, MAY 16, 2016)

MEREDITH VIEIRA, FORMER "TODAY" CO-HOST: I have to say, I went into your office once. Do you remember this?

MATT LAUER, THEN-"TODAY" CO-HOST: Yes.

VIEIRA: Snooping. And you had a huge bag of sex toys. Do you remember this?

LAUER: Wait a minute.

VIEIRA: Yes you did. You did. In your closet.

LAUER: Wait a minute. Can we explain what happened? Because you were there. We had a guest on the show who was a -- who was she? A sex therapist. And so, when she left I think you did the segment actually.

VIEIRA: I didn't. I didn't.

LAUER: When she left, she gave each of us a shopping bag of stuff.

VIEIRA: I didn't get a bag of stuff.

LAUER: True story.

(END VIDEO CLIP)

HANNITY: Also this clip, Matt Lauer with an awkward interview with Anne Hathaway where he obsesses over a, quote, "wardrobe malfunction." Let's take a look.

(BEGIN VIDEO CLIP, "TODAY"/NBC, DEC. 2012)

LAUER: Anne Hathaway, good morning, nice to see you.

ANNE HATHAWAY, ACTRESS: Good morning, Matt.

LAUER: I've seen a lot of you lately.

HATHAWAY: Sorry about that. I'd be happy to stay home but, the film.

LAUER: Let's get it out of the way. You had a little wardrobe malfunction the other night. What is the lesson learned from something like that other than you keep smiling, which you always do.

HATHAWAY: Well, it was obviously an unfortunate incident.

Yes. So let's get back to the event.

LAUER: One of the most creative terms of questions I have ever heard.

(END VIDEO CLIP)

HANNITY: And earlier today, a reporter from "Variety" told CNN that Matt Lauer's behavior was well-known by NBC employees. Take a look.

(BEGIN VIDEO CLIP, CNN)

RAMIN SETOODEH, NEW YORK BUREAU CHIEF, VARIETY: High level executives were told about his behavior. Both current and prior.

Our sources say, it wasn't even a concerted secret. It was known by many employees at the "Today" show including some employees that have gone on television and said publicly "we had no idea." According to our reporting, some of these -- some of the other personalities were aware of these allegations.

According to our sources, the co-anchors were aware of some of these allegations. And so, they're having trouble reckoning what some of these anchors said in private conversations versus what was said on TV yesterday.

ALISYN CAMEROTA, CNN HOST: Current anchors or former anchors?

SETOODEH: Both. This isn't the end of the story now. We believe that there will be more women coming forward and we believe there will be more evidence about who knew what when that will come out in the reporting in the days to come.

(END VIDEO CLIP)

HANNITY: OK. What did the folks at NBC know, when did they know it? NBC News Chairman Andy Lack is, quote, "deeply saddened" by this turn of events." But are Lauer's actions really a turn of events or just business as usual for the embattled former morning host?

And then there is the current fake news CNN chief Jeff Zucker, he served as the head of NBC News during many of Lauer's allegations of misconduct. Zucker is now saying that, quote, "I didn't know this Matt." So was Zucker in the dark or did he turn a blind eye?

These allegations against Matt Lauer, they needed to be investigated fully, but if true, those who knew about this and possibly enabled this behavior should be called out.

Now, with allegations abounding, well, all of the stress at NBC News seems to be getting to crazy liberal Joe Scarborough, especially after Trump made this accusation in a tweet. "So now that Matt Lauer is gone, when will the fake news practitioners at NBC be terminating the contract of Phil Griffin," he runs MSNBC, the conspiracy network, "and will they terminate low ratings Joe Scarborough based on the 'unsolved mystery' that took place in Florida years ago. Investigate."

Well, earlier today, liberal Joe had a complete mental and emotional breakdown on national television. Watch.

(BEGIN VIDEO CLIP, "MORNING JOE"/MSNBC)

JOE SCARBOROUGH, CO-HOST: We are facing a showdown with a nuclear power, and you have somebody inside the White House with the New York Daily News says he is mentally unfit, that people close to him say is mentally unfit, that people close to him during the campaign told me had early stages of dementia.

When is this the right time to talk about a mentally unstable president in the White House, and a nuclear showdown with another unstable madman in North Korea?

Everybody around Donald Trump knows he's not stable. Everybody around Donald Trump knows he's not stable now. Everybody.

(END VIDEO CLIP)

HANNITY: I know for a fact that's not true. By the way, now we have doctor liberal Joe. He's diagnosing on television in the morning.

Now instead of worrying about a nuclear holocaust with North Korea, maybe liberal Joe, maybe you should worry about getting his emotions in check and not letting this obsessive compulsive nonstop hatred of President Trump send him over the edge?

Joe, you need help. There's a lot more in terms of serious news that you should be covering. By the way, no one should worry that liberal Joe and his allegations by the way and his friends in the Democratic Party. Oh maybe Joe you should be asking questions about that. Because the Senate Ethics Committee has now opened a preliminary inquiry to the groping allegations against Senator Al Franken.

Now, this comes after yet another woman, an Army veteran, has come forward to accuse Franken of groping her during a USO tour in '03. And while Franken faces even more allegations, his colleagues in the House, well, John Conyers in particular, he's now facing growing calls to resign after multiple sexual harassment allegations and accusations involving a taxpayer funded settlement. Even his long time defender, Minority Leader Nancy Pelosi, she has miraculously now done a complete 180. Today she's now calling for Conyers to step down. Watch this.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI, D-CALIF.: The allegations against Congressman Conyers as we have learned more since Sunday are serious, disappointing and very credible. It is very sad. The brave women that have come forward are owed justice. I pray for Congressman Conyers and his family and wish them well. However, Congressman Conyers should resign.

(END VIDEO CLIP)

HANNITY: Remember, this comes less than a week after Nancy Pelosi defended Conyers, called him an icon, talked about due process. I guess now she suddenly remembered that she considers herself a champion for women's rights.

And meanwhile, John Conyers who is now hospitalized with stress-induced symptoms apparently, is remaining defiant. He's still denying the allegations. Earlier today, his lawyer fired back at Pelosi. Watch this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It is not up to Nancy Pelosi. Nancy Pelosi did not elect the congressman and she sure as hell won't be the one to tell the congressman to leave.

(END VIDEO CLIP)

HANNITY: We'll have more on these Democratic scandals that are plaguing them later tonight in the show.

But first, we have a lot more in our top story. Kate Steinle's killer found not guilty. Now walking free. Kate Steinle killed back in July of 2015, walking arm and arm with her father on a pier in San Francisco. Shot and killed by an illegal immigrant, Jose Garcia Zarate. This man had seven prior felony convictions, four involving narcotics. He was facing his six deportation at the time he shot and killed this innocent woman. The illegal immigrants said, he accidentally killed her. He said it was an accident that the bullet ricocheted off the concrete and hit Kate Steinle. His lawyers says he found the gun just moments before he shot her. And it gets worse. He says his client had never fired a gun before and got scared after it went off. What did he do? He threw it off the pier and they found it the next day.

And as I said at the top of the show, sanctuary cities tonight, those that support them, they are to blame for the death of Kate Steinle.

With reaction now, host of "Michelle Malkin Investigates" Michelle Malkin. You look at all of this in detail. All of this years. This guy, six deportations he was facing. The federal government said to San Francisco turn this guy over. And they refused to obey the law.

MICHELLE MALKIN, HOST, "MICHELLE MALKIN INVESTIGATES": Sean, my outrage is laden with melancholy. Because I have reported and investigated on so many of these cases over the last 25 years and there has been so little, if any, accountability for people in the federal, state and local government who have blood on their hands. Kate Steinle and her family never wanted or wished for the publicity that they have gotten, the pain that they have suffered and the fact that they have no choice but to be front and center in the headlines as they suffer as a result of this verdict.

This really is, I think, a damning indictment of so-called San Francisco values. Where is Nancy Pelosi tonight? Where has she been the last 25 years? This is her city. And it is her open borders policies that have haunted so many innocent people and innocent lives in San Francisco. And it is the conversion of America into a sanctuary nation instead of a sovereign nation that has endangered us and one of the primary reasons that President Trump was elected in the first place.

Because people made a choice after seeing this fork in the road, after seeing both political parties, Sean, both Republicans and their big business donors and Democrats and their identity politics, grievance mongers who don't care about the rule of law in this country. And the collusion between those two things that have created sanctuary policies and a sanctuary nation that still exists to this day.

When will this city and county sheriff in San Francisco and that mayor and the governor ever be held accountable for the deaths as a result of bloody open borders?

HANNITY: He spent much of his life, adult life behind bars. Six times, as I said he's going to be taken out. He actually said once he had aimed at a sea animal. He said another time that it fired when he stepped on it. I've been a pistol marksman since I am 11 years old. Guns do not go off by themselves. There can be accidental shootings. A sea animal. And then you changed your story here. There is a word for that. That is called lying.

MALKIN: Yes.

HANNITY: They're not being close to being the same story.

MALKIN: That's right. It strains credulity. The story that the defense attorney told and let me get to him in a moment with his comments after the verdict -- which is absolutely disgusting, some of which you showed. But the idea that he simply happened upon this weapon. And it was oopsy an accident when there were witnesses that testified at the trial that they saw him twirling the gun around recklessly beforehand and then scurrying away when the police were looking for who it was that caused Kate Steinle to fall to the ground and be shot in the back when she was as you said walking arm and arm with her father on a happy day.

The idea that this defense attorney now is politicizing this verdict and rubbing salt into the wounds of Kate Steinle's family is disgusting. And it shows you the mentality I think, that probably infected much of the jury. Did you know, Sean, that any discussion of immigration policy and Jose Zarate's five prior deportations, the detainer that was ignored by city and county officials, the pending six deportations, the seven felony convictions including four narcotics convictions, none of that was allowed to be presented to the jury. No wonder they ended up with a verdict they did.

HANNITY: All right. Michelle Malkin. The federal government had requested and thank you for your time tonight.

MALKIN: You bet.

HANNITY: Requested that when he was released from the San Francisco jail that he be handed over to the federal government. The sanctuary city laws prevented them from doing that. This was his sixth -- to be his sixth deportation. How do you get back in the country? Because of wide open borders. He spent 46 months in jail. The Feds requested that he be handed over so he can be deported again.

And in the process, an innocent woman is dead. Huge breaking news tonight. We have a lot to cover. We'll have a live report from San Francisco on Kate Steinle's killer being set free. More on the looming show down on Capitol Hill, the latest from NBC with Matt Lauer. Stay with us.

(COMMERCIAL BREAK)

HANNITY: Tonight heart breaking news for the family of Kate Steinle. The illegal immigrant responsible for Kate's death was found not guilty of murder, not guilty of involuntary manslaughter by a jury earlier tonight.

Here on the ground in San Francisco, with us with the very latest is Claudia Cowan. Claudia, one of the things that just stands out at me more than anything else, he said he was aiming at a sea animal. And then he claimed later that he stepped on it.

CLAUDIA COWAN, FOX NEWS CORRESPONDENT: Well, the defense certainly made much out of Mr. Zarate's conflicting statements that he made to the media, that he made to the press. And they took issue with some of the police translations as well. So the defense did a great job, Sean, picking apart this sort of muddled confession and statement about shooting at sea lions and stepping on guns and so forth.

But what a stunning end to this case that many had considered a referendum on illegal immigration and sanctuary city policies. But at the end of the day here in San Francisco, remember, this was a local murder case with mostly circumstantial evidence. And the fact that the defendant, a 45- year-old, Jose Ines Garcia Zarate was a multiple felon and deportee and who is protected by San Francisco's decision to refuse to comply with immigration officials, none of that was presented as evidence and the jury was not allowed to consider any of that and not to consider any politics as well when they went in to deliberate.

And they had deliberated about 30 hours when late this afternoon, we got the word that they had reached a verdict and decided that Kate Steinle's death was in fact a tragic accident. And now we are hearing from Kate Steinle's family. Jim Steinle saying that they are, quote, "Saddened and shocked." Kate's brother Brad saying, quote, "I'm not surprised. The system failed Kate from the start of the chain of events. Why would the verdict in this case be any different?"

But again, outside court, the defense team said, given the physical and the circumstantial evidence here, the jury made the right decision. By the way, Sean, the jurors quickly left after the verdict was read. They had nothing to say to reporters. I should mention that Garcia Zarate was convicted of being a felon in position of a firearm and that conviction does carry a sentence of 16 months, two years or three years. The judge will make that determination at a hearing probably next month. But again, what a stunning end to this case and a big victory for the San Francisco public defender's office.

HANNITY: All right. Claudia, thank you. And the system did fail the Steinle family.

Joining us now with more, Salem radio nationally syndicated host Larry Elder, former secret service agent Dan Bongino.

The idea that he could say, Dan Bongino, that he was aiming -- the words "aiming" at a sea animal in this particular case a seal, it appears, and been out in San Francisco. And then say, he stepped on it. Could that --

DAN BONGINO, FORMER SECRET SERVICE AGENT: Yes.

HANNITY: This -- can this firearm go off by stepping on it? I understand the trigger is actually one that you really have to pull.

BONGINO: You know, Sean, when I was a secret service agent, we used this firearm.

HANNITY: Yes.

BONGINO: This was -- now we had a different variation of the round. This was a 40 caliber round. We used the 357 Sig. But this was a Sig Sauer 40 caliber handgun. The short answer for you is, hell no, it can't go off by stepping on it and it certainly not going to go off by fiddling with it in a shirt, like this guy. You actually happen put some force into pressing the trigger, folks, this is a complete travesty of justice case. Clearly San Francisco told the world tonight that justice is not blind in San Francisco, it is political. This is a complete travesty and an outrage.

SEAN HANNITY, FOX NEWS HOST: This was supposed to be this man's sixth deportation. You have the federals requested to the San Francisco jail where he was being held for 46 months. They totally ignored it. They ignored the law.

LARRY ELDER, SALEM RADIO NATIONAL SYSNDICATE HOST: They did.

HANNITY: And because our borders are so wide open, he could come back in all these times. It speaks volumes. I say that those sanctuary laws and our weak borders killed this poor woman.

ELDER: Well, I agree with you 100 percent. Look, I didn't believe they would get a first degree verdict or a second degree guilty verdict. I assumed it would be involuntary manslaughter. The point is he shouldn't have been here in the first place. He should have been deported. By the way, California -- the bay area has since changed sanctuary City law. If you were to apply that change to the same set of facts, he still would had been released and not have been deported. So California is a sanctuary state. San Francisco is still a sanctuary city and this person shouldn't have been here in the first place, irrespective of the law and the facts of this particular case.

HANNITY: Yes. Let me go if I can back to Dan and talk about this. Does this impact the DACA debate, impact the need, the necessity the President ran so hard on building a wall, building a wall. Now we have plans in the process of being made. In other words, blueprints for what the wall will be. Does this finally motivate congress to secure the borders so that somebody can't come back six separate times?

BONGINO: You know, gosh, Sean. I really hope so. I mean, this is a troubling night. I mean, I feel for the family. This is just a really unbelievable human tragedy. Think about what happened. We have a guy in the country illegally five times. He admitted to being on drugs. He admitted to at least firing the weapon. He disputes how. He admits to running away. He is caught on video, Sean, running away on video. He throws the gun into the San Francisco bay. Then he gets in front of a San Francisco jury and is even acquitted, Sean. Of involuntary manslaughter. I mean, how do you look the American people in the eye? I'm serious. If you're in that jury and say justice was done tonight to this woman who by the way, Sean, her aorta was suffered as a 40 caliber round went through her back and pierced her aorta. I mean, come on, if this doesn't change the debate, nothing will.

HANNITY: I agree with what Dan said. A seven-time convicted felon. Sixth deportation this was going to be. I ask everybody watching TV tonight, put yourself in the place of this young woman or the parents, or the family, or the friends of this young woman that was -- her life was gone and we had every opportunity to make sure this convicted felon didn't come back in. But we didn't secure our borders and the system failed by allowing him not to be handed over to the federal government that requested him based on what the law of the land is.

ELDER: Right. Sean, I would hope this is a wake-up call. This is California, this is the same state where Jahmile Shaw Jr. was shot and killed by an illegal alien that shouldn't have been in the country. After that happened, after Kate Steinle happened, that is when the governor signed the sanctuary state bill. They were known and did it anyway. This is California. The same state where O.J. Simpson butchered two people and got away with it. Robert Shaw, same thing and got away with it. You never know what will happen before a jury. After the O.J. Simpson case happened, I stopped trying to predict what would happen. This man should not have been in the country in the first place. Shouldn't have been a trial in the first place, because he shouldn't have been here in the first place.

HANNITY: Thank you both for being with us. This system failed, this young woman failed her family. Our thoughts and prayers. I'd be devastated. Everybody should be devastated. Think if it was your family. When we come back, Tomi Lahren, Dana Loesch, Jessica Tarlov, bringing in on the outrageous verdict in San Francisco. Also, we get White House reaction from Ed Henry. Tomorrow morning, watch Kellyanne Conway, she is on "Fox and Friends" reacting to the Steinle verdict. More on Hannity when we continue.

(COMMERCIAL BREAK)

HANNITY: Fox News alert. Illegal immigrant Jose Garcia Zarate found not guilty in the 2015 shooting death of Kate Steinle. He was wanted for his sixth deportation. He shot Steinle on a pier in San Francisco before then running and tossing the gun into the bay, running from the scene of the crime. Earlier today, his lawyer sounded off on the President. This is outrageous. Watch this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: For those that might criticize this verdict, there's a number of people that have commented on this case in the last couple years. The Attorney General of the United States, the President and Vice President of the United States. Let me just remind them that they are themselves under investigation by a special prosecutor in Washington D.C., and they may themselves soon avail themselves of the presumption of innocence and beyond a reasonable doubt standard. So I would ask them to reflect on that before they comment on disparage the results in this case.

(END VIDEO CLIP)

HANNITY: Joining us, Radio talk show host with Radio America and author Dana Loesch, also Fox news contributor Tomi Lahren, Jessica Tarlov. Here is a fact. Six times, there will be sixth deportation. They wouldn't hand him over to the federal government who requested to hand this man over. Did this sanctuary city law kill Kate Steinle?

JESSICA TARLOV, DEMOCRATIC STRATEGIST: Well, the illegal immigrant himself killed Kate Steinle. The policy allowed him to stay here. There will be a change in this. We saw it in Virginia with the race Ralph Northam came out against sanctuary city, I believe it was key in him winning that race.

HANNITY: Could you say without sanctuary cities in all likelihood Kate Steinle would be alive tonight.

TARLOV: Without the San Francisco sanctuary city law.

HANNITY: Would she be alive tonight?

TARLOV: She was 32, 33 I imagine she would be alive.

HANNITY: SI there something wrong with borders are so porous that a man can sneak back in a sixth or seventh time?

TARLOV: We have a net outflow of the country --

HANNITY: Do you want to build the border wall?

TARLOV: No. I would never want to build a wall, because it's ineffective.

HANNITY: Ineffective, tell that to Bb. Netanyahu. Netanyahu swear it has changed Israel. I have seen it.

TARLOV: Israel and the United States are very different. Our borders are different.

HANNITY: Walls work.

TARLOV: I do not believe that. There are a number of Republicans don't believe that. Talk to a Republican Congressman. In Texas they say that is not the case. You want more agents there, I'm fine with that.

HANNITY: Let's me go to Tomi Lahren. Tomi, your thoughts.

TOMI LAHREN, FOX NEWS CONTRIBUTOR: Well, to answer Jessica's questions, there's physical barriers work. That is why Democrats don't like them. The Democrats will be putting a very interesting situation now. They have to choose between illegal immigrants and the American people. I'm anxiously awaiting the response of the Democratic Party. Because I think it's really going to help us in 2020.

HANNITY: Dana, like you, I've been firing -- I've been using firearms since I'm young. He said he was aiming this at a sea animal. And then it became I stepped on it. Then it ricocheted and hit Kate Steinle in the back. This particular six hour, it's not one that I fired. I was wondering if you have.

DANA LOESCH, THE BLAZE ON TV AND AUTHOR OF "HANDS OFF MY GUN": I have. I thought what Dan Bongino said earlier was pretty spot on. I thought that the defense was moronic on this. There's things the jury saw that we the people didn't see. But I do find it interesting that the same people that want to look at forensic reports as concerns ballistics, they ignored that in the Mike Brown case. For the lawyer to also invoke Donald Trump and falsely also say that there's an investigation based on criminal propaganda which substantiated a FISA warrant, I thought was bizarre. This is moronic. People in California are not protected.

The courts have said there's no justice, no peace for the law abiding. Those that break the law and enter illegally are given preference over law abiding Americans and California has now declared itself to be a dangerous state. California have decided they want to make it virtually impossible for law-abiding Americans to be able to choose their pro-choice right of self-defense. But if you're an illegal alien and you're in that state be protected as a sanctuary state, you're afforded all of the luxuries of American citizens including rights that we have sacrificed for, due process. You're given a slap on the wrist. This wasn't even involuntary manslaughter isn't a front to due process and all the law abiding systems in California. This is shameful.

HANNITY: The system failed on so many different levels. If I'm President Trump tonight, I'm saying no federal dollars to any or state like California. You said you agree. Sanctuary City law was in existence, this girl would likely be alive tonight. Why should the federal government give a penny to any city that doesn't want to obey the laws of this country?

TARLOV: I think all sanctuary cities should cooperate with ICE officials.

HANNITY: If they don't, we shouldn't give them federal dollars. If I'm President Trump, I'm saying not a dime to these cities.

TARLOV: There's a lot that that money gets used for not just for sanctuary city.

HANNITY: Too bad. If you allow criminals, felons --

TARLOV: Mayors in sanctuary city, all over this nation are paying attention to what happened today. I believe they'll change --

HANNITY: I won't hold my breath. That is not going to bring back cat Steinle.

TARLOV: It's not. It's a tragedy. We had been saying that from the beginning. But you'll get if 11 million illegal immigrants who are here out of a country, get rid of a policy that many Republicans have backed to make sure that we can come out of the shadows to cooperate with law enforcement.

HANNITY: Let me go to Tomi.

LAHREN: I know somebody that resides in California, me as a California woman that illegals are protected and Americans are not. Any time you defend sanctuary cities, I have to ask you, why would you defend a policy that is harboring criminals? That is the end of the discussion.

TARLOV: It's not the end of the discussion. When you have a national tragedy and we have Dana on the panel that is a firearms experts, when we have a mass shooting, we don't say take away the guns, because someone --

HANNITY: Liberals do all the time.

TARLOV: They don't say take away your guns, we want responsible gun owner.

LAHREN: I have to interject.

TARLOV: Please.

LAHREN: Law-abiding Americans are always blamed for the actions of criminal thugs like Zarate, this individual that murdered Kate Steinle. Law-abiding Americans that are second amendment practitioners that are blamed for the actions of repeat offenders like this illegal alien. When the illegal alien does it, it was an accident. He meant to shoot a seal. If only law-abiding Americans got the courtesy as much as this individuals. It's never going to happen. Now you can understand why so many law-abiding Americans are so disgruntled at this.

HANNITY: I have to let you go. Sad night. Thoughts and prayers with this family. The system failed this family and this young girl. Ed Henry next from the capitol and will give us an update on three big stories. Also later, the war on the Trump women has reached an incredible unbelievable new law. Ivanka Trump, the first lady, Melania Trump, they're owed major apologies. I'll explain.

(COMMERCIAL BREAK)

HANNITY: All right. Ed Henry following three big stories from the capitol tonight as we get to other news. Ed, what's going on?

ED HENRY, SENIOR NATIONAL CORRESPONDENT: A tough statement just in from the Attorney General on the Kate Steinle verdict. Jeff Sessions saying in part that cities choosing to put "criminal aliens to the streets rather than turning them over to federal immigration authorities put the public safety at risk." I can tell you Republicans have spoken, too, on Capitol Hill tonight and saying this verdict could give the President new impetus to push his get tough policies on illegal immigration, a key part of his agenda. Another key part of his agenda of course tax cuts. The president got good news today when John McCain said he will support them. Remember McCain sunk the president's push to repeal and replace Obamacare. His support on taxes makes it very likely the President will get a victory on that as early as tomorrow.

The President has already been touting a stock market that has been on fire lately. The Dow today seeing its 63rd record close of the year and could be going even higher and when see the details on this bill, for example the corporate tax rate will be dropping from 35 percent to roughly 20 percent. The personal side, there's been claims that this helps very few people. The joint committee on taxation just put out a new report saying 60 percent of U.S. households will get a tax cut. 8 percent approximately will pay more. Democrats jumped on that same study.

That committee saying that the economic impact will not be very strong and that this will strongly increase the deficit. Republicans pushing back on that today saying that they're undercounting the impact on the economy. That will be hashed out tomorrow with a likely final vote on the senate on Friday. The bottom line, the other big story tonight, reports out of North Korea that the North Koreans may be willing to negotiate about its nuclear weapons program. That is a bit of a surprise. Remember earlier this week that missile launch suggesting that North Korea could reach various U.S. cities. There's nuclear experts saying this could be a sign that Kim Jong- un just wants to show that he has a deterrent, but doesn't want to actually use the missiles and weapons as an offensive weapon against the U.S. and others. Remember President Trump said he doesn't want to negotiate with Kim Jong-un. But this sign tonight that maybe the President tough rhetoric has been working with North Korea might lead them to the table, Sean.

HANNITY: Sounds like Kim Jong-un doesn't want to be obliterated, which would have to happen. Not a lot of good options there. Ed Henry thanks for being with us. Joining us with more reaction, White House senior adviser, for strategic communications Mercedes Schlapp. Mercedes, when you look at the 60 plus percent of Americans that will see a reduction of taxes -- and by the way, because I live in a liberal state like New York, I am not one of them. But state local taxes no longer deductible but really all this years, states like Florida, Texas, and no state income tax have been subsidizing these big spending, big taxing liberal states like California and New York, right?

MERCEDES SCHLAPP, WASHINGTON TIMES: Right. I mean, you have to think about what the President here is committing to. He is committing to ensuring that middle class families receive a tax cut. That was a primary focus in addition to making sure that they simplify the tax code and also to ensure that they reduce the corporate taxes. When you lower the corporate taxes, Sean, the benefits many of them go to the American worker. You're starting to see actually investments, building in factories. Starting to see communities that will be revitalized, because when you have more of these investments, more corporations coming back to the United States, not planting themselves out in other countries, but really coming back to what we call the American model, it's a huge benefit for these communities that have really been strangled under what we would call so much regulation under the Obama years. Not enough economic growth. What are we seeing? We're seeing consumer confidence up. Business is optimistic. So there's really this sense of President Trump has said, the rocket fuel economy where you're going to see by year ten, the GDP between 3 to 5 percent growth that is real economic growth and real results.

HANNITY: I have to imagine the President that ran so strongly on the issue on securing our borders and sanctuary city -- by the way, Kate's law was passed in the house. One of the many bills that haven't been taken up in the senate, about 300 of them. I hope this tax bill becomes a wave of work now and maybe a sense of urgency by McConnell and company. I ask you this. I can only imagine, this is only going to fuel the desire of this country to protect innocent people here. They requested the turnover. He was in custody. Open borders allowed him back in every time.

SCHLAPP: Well, I got to tell you, I remember when President Trump during the campaign said where is the sanctuary for Kate Steinle? Let's think about that, Sean. This is an important moment right here where we're outraged by what we're seeing. Obviously what we have noticed is the fact that there's this incredible need for the end of sanctuary cities. This is something that the President has pushed through on his principles of immigration and something that he focused on as well as closing the loop holes and ensuring that we're going to enforce the immigration laws. This is incredibly important in addition to border security. Why, because when you look at the jurisdictions that refuse to hand this criminal alien over to the federal authorities. The City didn't honor the ICE detainer. What happens there, you have innocent lives lost, innocent bloodshed? Because of that --

HANNITY: So scary.

SCHLAPP: She is not going to be with her family during Christmas and that is why the president primary focus --

HANNITY: Everybody should think about that.

SCHLAPP: The focus should be to ensure the safety of the American people.

HANNITY: I got to let you go, congrats on your new position, by the way we appreciate it. When we come back, the media stoops to a new low attacking Melania, Ivanka Trump. Wait till you see this. It's outrageous.

(COMMERCIAL BREAK)

HANNITY: Before we go tonight, I have to highlight just how the media is yet again stooping to new lows in their attacks against the Trump family and in particular, Ivanka Trump, the first lady, Melania Trump. Let me explain. The White House early this week. They released a photo of the first lady, Melania Trump, decorating the White House for Christmas. Instead of complimenting how beautiful everything looked and the effort that was put in, what does the far left hate Trump media do? They attack the first lady.

Look at this. The Daily Beast, "Step Inside Melania Trump's Nightmare Before Christmas." These people are vicious. And then the media goes after Ivanka Trump. Check out this social media headline. From Newsweek, "Ivanka Trump Plagiarizes One Of Her Own Speeches In India." You dopes, you can't plagiarize herself, your own speech. You know how many speeches? I give the same jokes and a lot of them. I plagiarized myself. You people are so dumb. We will never be fake news, destroy Trump, we're fair and balanced. Laura Ingraham with her baby pictures standing by. Did you bring it?

LAURA INGRAHAM, "THE INGRAHAM ANGLE" HOST: No, no. I did not bring it. We will do it tomorrow.

HANNITY: All right. I am so angry over tragedy, how the system failed the family.


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