This is a RUSH transcript from "The O'Reilly Factor," July 28, 2011. This copy may not be in its final form and may be updated.
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LAURA INGRAHAM, GUEST HOST: In the "Impact" segment tonight: tensions flaring on Capitol Hill. We have every detail up to the minute and we'll bring it to you. But now, one man who is bucking his own party on Capitol Hill. Steve King, congressman from Iowa, is going to vote no on the Boehner plan. And we're waiting for that vote. Congressman, how are you? You could miss the vote. Maybe I will keep you here a little longer than I thought.
REP. STEVE KING, R-IOWA: Maybe I will convert you, Laura, and you will send me back down there.
INGRAHAM: OK. Here is what I want you to explain to me. How do you propose, by defeating the Boehner bill, that you are going to get further down the road toward the goal that I think so many of us share, which is to shrink this government to get this debt under control. How will defeating Boehner get you closer to that goal?
KING: Well, I think the easy answer is that we passed Cut, Cap and Balance. John Boehner said that is our plan and we are sticking to it. And had that been laid out on the table or left on the table we would be looking at having an opportunity to pass balanced budget amendment. If it was clear that the votes aren't there to pass this, we would have stood on that ground. But if we concede this ground now, our chances of getting a balanced budget amendment passed in the 112th Congress go to nil.
INGRAHAM: You actually think you are going to have more leverage after August 2nd than you do right now?
KING: I do. I do.
INGRAHAM: How -- for the life of me, I have been trying to wrap my mind around that but I don't see it because we have lost almost 500 points in the U.S. stock market in the last five days in anticipation of the deadlock continues. The bond markets have also started to really go down. People are really worried about another collapse i.e. right before TARP when the market dropped 800 points. Do you really think that Boehner and McConnell and moderate Republicans, moderate Democrats are going to sit by and be kind of held hostage by this idea that we have to pass a balanced budget amendment? As the markets crumble and all these international markets are in turmoil, do you actually think the Tea Party then will be able to get, OK, we are definitely going to vote for a balanced budget now. I don't see that.
KING: We have to remember that this has been ginned up by the advocates for this kind of a policy.
INGRAHAM: So you think the markets dropping is just -- that's just self-fulfilling?
KING: I think that's some indicator that people that didn't sell didn't lose any money. A week from now we will see how that actually looks. But the language about default has been false language from the beginning. Default now means in the minds of American people because all of this debate that's gone on at the President level, at Tim Geithner's level, at the leadership level has been about default being the first day that we run out of borrowing authority. Default is if the United States doesn't service its debt. That just requires the first dime on each dollar coming in to service American debt. That's all it is.
INGRAHAM: Steve, you and I have been warring together on the same side for how many years on so many issues from life to, you know, economy. We have people like Charles Krauthammer, George Will, Mike Pence, Colonel Allen West, Paul Ryan, Bill Crystal, all these guys who I think they are conservative bona fide can't really be called into question. They've been slogging it out in the conservative wars for decades. How is that they are all wrong and a very small minority of Republicans -- again, I like your ultimate goal, I'm with you on your ultimate goal -- how is it that they are wrong and you guys are right when the goal is what we all agree is cut, cap, and balance.
KING: Partly they bought into the argument on what default is. Partly they bought into that.
INGRAHAM: Regardless of what the argument is, isn't it true that if the markets collapse you will not be able to get your way with moderate Democrats and also moderate Republicans who are just going to say, you know something, we like the Tea Party people but to heck with them. We are going to vote to raise this debt ceiling? Do you not think that's going to happen?
KING: First, there is going to be no Democrat votes in the House of Representatives for the Boehner bill. There are 53 senators that have said it's dead on arrival they won't vote for it over there.
INGRAHAM: How is killing your speaker going to help the Tea Party movement?
KING: We have been led down this blind alley. We have to stand on the principles we believe in.
INGRAHAM: Is John Boehner a conservative?
KING: Yes, I think he is. I think he's a conservative…
INGRAHAM: Why is he doing this? He is governing, right? That's the hard thing to do is governing.
KING: He has said from the beginning he doesn't want to face a government shutdown over the CR. And he doesn't want to face a deadline over…
INGRAHAM: Will a government shutdown help the Tea Party Movement and all of --
KING: No. I don't want a government shutdown. I want to service our debt. I have reintroduced prioritization language. Not the President, not the leader -- no one will lay out the agenda on what gets paid first on priorities. That's what needs to happen. Pass a prioritization bill. We have got time, Laura. We've got time.
INGRAHAM: Do you think the debt ceiling is going to be raised? Not what you want.
KING: I do.
INGRAHAM: You do think it will…
KING: I think it will be raised and I have said that for over a year.
INGRAHAM: When it is raised, do you think it will be raised with an amendment attached to push through the balanced budget amendment?
KING: It has a reasonable chance to do that.
INGRAHAM: On what indication? If the markets collapse, as they already -- as some people are starting to say are collapsing…
KING: The indication is who wants it worse?
INGRAHAM: Why won't people suddenly say, you know something, we lost the Boehner bill which does have some spending cuts -- not as many as I want, believe me. I'm with you on that.
KING: I think it meets the Ryan budget authority.
INGRAHAM: When the Ryan budget was obviously shot down in the Senate and we all supported it. It was dissed by the White House. And he's supporting Boehner though.
KING: This bill -- the Boehner bill concedes the Ryan budget is no longer a target.
INGRAHAM: But why is he supporting it? Why is Paul Ryan -- is he another faux conservative?
KING: There is a lot of power that ask people to go along and be part of this thing that's called a team. And if there are no dissenters we will continue to go down the path. We have given up the leverage of the CR.
INGRAHAM: So it's a principle vote. It's a principle vote.
KING: Yes, it is.
INGRAHAM: I'm with you on the principles, but you have to get to the end game.
KING: If we don't assert this leverage here, we'll have no leverage to balance at the 112th Congress. That's my bottom line.
INGRAHAM: I think that you are on the verge -- and I say this with great sadness -- of losing all the great leverage and the gains that have you made up to this point. That's my concern. I think there is a lot of conservatives out there who agree National Review's online poll overwhelmingly for the Boehner plan. We will see how it all plays out.
KING: I understand. It's all over the media.
INGRAHAM: But look, I'm with you on the ultimate goal. You're totally right on the ultimate goal.
KING: We will see how it plays out in the long run. History will write it.
INGRAHAM: I hope so. And congressman, it's great to see you, as always. Thanks so much for joining us.
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