This is a rush transcript from "Hannity," April 13, 2011. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: President Barack Obama unveiled his plan to reduce America's deficit by four trillion dollars over the next 12 years or less. Now essentially, it is a two-pronged attack. First, he wants to slash the Pentagon's budget. And second, he wants to increase taxes on the so-called wealthy.


PRESIDENT OBAMA: We cannot afford one trillion dollars worth of tax cuts for every millionaire and billionaire in our society. We can't afford it. I say that at a time when the tax burden on the wealthy is at its lowest level in half a century, the most fortunate among us can afford to pay a little more.


HANNITY: And in addition to laying out his blueprint, the president resorted to scare tactics as he bashed the house GOP proposal, let's look at this.


OBAMA: A vision that says, if our roads crumble and our bridges collapse, we can't afford to fix them. If there are bright young Americans who have the drive, and the will, but not the money to go to college, we can't afford to send them.

It's a vision that says America can't afford to keep the promise we've made to care for our seniors.

It's a vision that says, up to 50 million Americans have to lose their health insurance in order for us to reduce the deficit.


HANNITY: And on a day when President Obama pledge to focus on reducing the deficit, he spent a lot of time talking about spending your money. Let's take a look at this.


OBAMA: We will invest in medical research. We will invest in clean energy technology, we will invest in new roads, in airports and broadband access. We will invest in education. We will invest in job training.


HANNITY: Invest, invest, invest. Another word for spend, spend, spend.

And here with reaction of the speech, Republican Congressman John Campbell of California, Democratic Congressman Rob Andrews of New Jersey. Guys, welcome back to the program.

REP. ROB ANDREWS, D-N.J.: Hey, Sean. How are you doing?


HANNITY: Robert, let me start with you. When the president talks about -- let me play him from 2010. And let me play a portion of what he said today. Because I find frankly, a lot of the comments of the president so full of demagoguery, so full of hyperbole, so full of mean spirited attack. I want to see if you'll defend it. Let's roll him first from 2010.


OBAMA: We're not going to be able to do anything about any of these entitlements if what we do is characterize whatever proposals are put out there as, well, you know, that's, the other party is being irresponsible. The other party is trying to hurt our senior citizens.

One vision has been presented and championed by Republicans in the House of Representatives.

It is a vision that says, up to 50 million Americans have to lose their health insurance in order for us to reduce the deficit.

Many are somebody's grandparents, maybe one of yours, who wouldn't be able to afford nursing home care without Medicaid. Many are poor children.

These are the Americans we would be telling to fend for themselves.


HANNITY: Rob Andrews, when he talks about that, the Republicans and the Ryan plan that middle class families with children and autism, with autism and Down syndrome, some with disabilities, these are the Americans that the Ryan plan is saying to fend for themselves. That is false, that's inaccurate, that is not true.

ANDREWS: I wouldn't have used that rhetoric, Sean. Let's see what is true. The president proposes to replace Medicare, which is a guaranteed benefit paid out of Medicare trust fund, with a subsidy to go buy a private insurance policy. And, you know, if you are a little older or sicker or have these kinds of disabilities, it is very hard to get an insurance company respond the way Medicare does. So it is true that he's putting people on Medicare, which is elderly and disabled, at risk.

HANNITY: Yes, you know, I'm listening to all of this rhetoric, Congressman Campbell, and I'm saying, this is the president lecturing us not to do this very thing. The country is literally, you know, $14 trillion in debt and headed higher. He didn't present this budget back in February. He didn't have the courage to go out and lead. So, Ryan goes first. Ryan has significant cuts. The president demonizes him as that old people aren't cared for by Republicans, young people, sick people. I mean, I find this hypocrisy so overwhelming in this case, especially when he gives us this lectures not to do it.

CAMPBELL: Yes. Sean, I was really disappointed in the speech today. And frankly, I was going into it, I was hopeful, OK, finally the president is going to enter the fray here, he's going to make the proposal and begin a discussion, because we got real problems. I mean, this is not funny stuff. This is not our normal ideological discussions that Rob and I have. The country is heading off a debt cliff. And we need to get it away from that cliff.

And unfortunately, today the president first of all, as you suggested, his rhetoric was extremely harsh. And although he said that we should all have a rational discussion about these proposals, and I think we should, he started out by just making a very political speech and just ripping Ryan and the Republican proposal, and that was not a good start. And then I can go through a lot of the things that he suggested and say that they are really not going to have that much of an impact and that he really didn't put a substantive proposal on the table.

But this was an opportunity to start to work together on this thing. And I think the president totally botched it.

HANNITY: Yes. Well, it seems to me, you know, Rob Andrews, had he lived up to what he said in January 2010, if he lived up to what he had said after the Tucson tragedy, I don't think he would have come out and said these things today. So, is he basically trying to scare old people, scare sick people, scare people into, you know, opposing what the Republicans are proposing, is he using them?

ANDREWS: Sean, I don't think he's using them. I think he's trying to reach an agreement by June 30th. And I thought that was the best thing he said. Congress never acts without a deadline. He's going to sign a bill later this week that has $40 billion in spending cuts. I'm going to vote for it, I think ist's good. And by saying June 30th, is a deadline I think that hints, that it is tied to the debt ceiling extension which is a real deadline we have to come to grips with. He has covered all the major pieces of solution, Medicare and Medicaid, defense, Social Security was alluded to, other entitlements, domestic spending and revenue. I think some element of all of those things are necessary to be dealt with. And I think we can get it done by June 30th. I really do.

HANNITY: Yes. Congressman Campbell, what about the debt ceiling? I think this is an important issue. Are Republicans willing to raise the debt ceiling? And if they are, what are they going to ask for in exchange?

CAMPBELL: Well, and that's the question. Are we willing to do it? Yes. But we want something in there, something included in that bill, so that we can start to change the trajectory of this debt growth. Because we don't want to keep doing this over and over and over again until we go off the cliff. And that debate is raging I got to tell you within the Republican Party. And it is not like there's a disagreement -- yes -- we are trying to figure out what do we really want? I mean, in my view, I know some people are talking about structural reforms, spending limits, that sort of thing. I would rather bank some money now.

ANDREWS: I agree.

CAMPBELL: I'd rather start to reduce spending now.

HANNITY: Let me ask Rob Andrews about that. Rob, the president when he was senator in 2006, he opposed the debt ceiling. Steny Hoyer opposed the debt ceiling. Now they are arguing it is irresponsible if you don't raise the debt ceiling.

ANDREWS: So did I. I was wrong then to do that. As a the president, Steny Hoyer said that it is such -- it's an easy sort of cheap shot when you are in the minority party to oppose this. And I'm going to vote to extend it because it needs to be done. But something John said I think is very true. There ought to be a discussion about how we can couple that. Whether it is in the same bill or not, with Medicare and Medicaid restraint, entitlement restraint, this is the time to get this done. And I really do think just as we are going to have a deal tomorrow that passes with bipartisan support in short term spending, let's try to get one on long term spending as well.

HANNITY: All right. Guys, thank you both for being with us. We appreciate it.

CAMPBELL: That's great, Rob. Let's do that.

ANDREWS: I'm ready, John.

HANNITY: Let's work on Medicaid and Medicare. Let's do it.

ANDREWS: I'm ready.

HANNITY: Guys, I appreciate it. Thanks for being with us.

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