Ronna McDaniel on tax reform, the GOP in 2018

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This is a rush transcript from "Hannity," December 22, 2017. This copy may not be in its final form and may be updated.

DAVID WEBB, GUEST HOST: And welcome to this special edition of "Hannity." I'm David Webb in for Sean tonight. President Trump closing out the year with a major legislative victory by officially signing the $1.5 trillion GOP tax cut in to law. Take a look.


PRESIDENT DONALD TRUMP: We are going to wait until January 7th or 8th and do a big formal ceremony. But every one of the networks were saying, will he keep his promise? Will he sign it for Christmas, before Christmas?

And so, I immediately called and said, let's get it ready. This is something that Republicans wanted for years and Democrats wanted for years and yet it never got done. Who would object to trillions of dollars being brought back into our country? Nobody. The biggest tax cuts and reform in the history of our country.

This is bigger than actually President Reagan's many years ago. I'm very honored by it. Democrats don't like tax cuts. They want to raise your taxes. They don't want to lower your taxes. They want to raise your taxes and they want to spend money foolishly on things that we don't need in many cases.


WEBB: The President being very loose in his speech earlier today and as those lawmakers leave Washington for Christmas, major battles are set for when they get back in January. However, the President is on offense after passing this massive tax cut bill.

Joining us now, Fox News and Chief National Correspondent Ed Henry.


WEBB: I have got to tell you I'm excited. I'm exuberant about this. I was on the air this morning. The President began speaking, we cut to it, millions of people heard what he said today. And he was just being Trump, Ed.

HENRY: Yes, look. He has been on defense for a large chunk of the year. You have got the Mueller investigation out there. He still has to deal with going into the New Year. They failed on healthcare. They hope to take another crack at it in 2018. You had all these critics, all these naysayers saying, he is not going to get the tax cut. Republicans cannot govern. They have got the White House, the House, and the Senate.

They stepped up here. And you heard McConnell and Ryan and others say, it was presidential leadership that got this across the finish line. We have heard Chuck Schumer for weeks now say that this is not going to trickle down. The workers, you know, the employees are not going to feel the corporate tax cut from 35 percent to 21 percent. What's happened the last 48 hours here?

WEBB: They have been determined before it was even written or read. Chuck Schumer says, Republicans will rue the day. What about the political battle that's shaping up?

HENRY: Look, it's going to be a difficult 2018 for Republicans. You've got to be fair and acknowledge that that any party in power when you have got a new president, Barack Obama faced this, Bill Clinton faced this, either party, you are going to likely face losses in the midterms. But, this tax cut may mitigate that that may help this president big time. Because when Chuck Schumer says, this is not going to trickle down to employees and then a whole bunch of companies like Boeing and AT&T say, we are giving out $1,000 bonuses.

We may be hiring more people. We are investing in our company. That's exactly what the President promised would happen and which Democrats said would not happen. And so, if you have an economy that's already been picking up steam in recent weeks and months, all of a sudden take off in 2018, that's going to wreck some of the Democratic plans for major gains in the midterms.

WEBB: So, the Democrats if I'm reading you right, are going to have a tough time with the kitchen table response which is, I've got a thousand more bucks in my pocket. I'm paying less taxes. Double standard deductions. I'm not paying taxes on that money, if that matters in the political narrative.

HENRY: Sure.

WEBB: But you know, some numbers matter here. If you say AT&T and they give 200,000 people a thousand dollars, they are actually putting somewhere around $200 million, give or take an employee into pockets in the economy.

HENRY: Sure.

WEBB: How does the Democrat go against that?

HENRY: Well, look, they go out and buy a television for the holidays. They put food on the table. I went back and looked, in 2012 Barack Obama in the election year, of course, was talking about a one-time tax rebate that was small. Forty dollars. #$40. You probably remember that on the radio show.

WEBB: I remember that.

HENRY: And Democrats were saying, this is going to make a big difference. Forty dollars? That was nothing compared to this. The average family, middle class family $75,000, family of four is going to get a tax cut of about $2,000. That puts the $40 to shame. And by the way, you now have every single Democrat in the House and Senate who is on record voting for higher taxes and lower wages because they didn't want to see what's playing out now play out. If the Republicans can't write a 30 second TV ad pointing out that every Democrat voted for higher taxes, they should get another line of work.

WEBB: That's a very good point that Republicans and we are going to talk to the chairwoman of the RNC in just a minute. They have got a big job ahead of them. Because they have got to go out. They don't need to sell it. It is signed. It is law.

HENRY: That's what the President said. I don't need to travel. It is going to sell itself. We'll see.

WEBB: But they need to gout and they need to explain the benefits of it to the American people. And they have to rebut the attacks on corporations. Because it's not just mega corporations, it's small companies.

HENRY: We have to point out immigration reform. Infrastructure, there is a lot, health care. Are they going to take another bite at the apple? They promised voters Republicans, repeal and replace. They failed this year. Can they come back with some third way, not ObamaCare, not the repeal and replace. Is there some way to move forward? So, let's be clear there are challenges for this President heading into 2018 but this tax cut gives them a head of steam.

WEBB: It gives them a head of steam. For sure. And by the way, those people paying the ObamaCare taxes according to the IRS, 80 percent of them, they make under $50,000. That means that repealing that mandate, that individual mandate, the funding mechanism is a big boost for Americans. Major boost for young Americans.

HENRY: Yes. And it's the opposite of what Democratic leaders have been saying. Think about Chuck Schumer saying, this is all about the rich. Nancy Pelosi saying, if this bill passes people are going to die. That is the way they build this. Maybe the opposite is happening.

WEBB: A Christmas present. I'm wearing my Christmas tie.

HENRY: Merry Christmas.

WEBB: Ed Henry, good see you my friend.

HENRY: Good to see you.

WEBB: And joining us now with reaction, RNC Chair Ronna McDaniel. Great to see you. We have talked through this entire process on radio and in person about this and a major achievement the President gets a major legislative win. And the RNC now as I just said to Ed, that you guys have to take it to the streets. Where do you begin?

RONNA MCDANIEL, RNC CHAIR: Well, it is historic day. It is a great Christmas present. And President Trump led the way. You know, I think about a year ago when he was coming to my state of Michigan and traveling this country, and recognizing that wages were stagnant, that people were suffering. And now today, he has said, we are fighting for you. We are going to give the middle class a huge tax cut.

We are going to make your paychecks bigger. We are going to increase jobs. We're going to grow our economy. We're going to fight for the American people. So, at the Republican Party, we are going to keep hammering home the great accomplishments of this president and Senator McConnell and Speaker Ryan. And then we are going to remind them that the Democrats were nowhere to be found.

In fact, Joe Manchin went home and he saw a big banner that said, we'll remember in November. We're going to make sure they remember in November that no Democrats supported middle class tax cuts in helping the American people.

WEBB: Let's talk about the major driver of the economy and that is the corporate side of this. And I'm not talking about the mega corporations. Escorts, L corpse, LLPs, small businesses, the individual truckers out there. They call every day, they ask what does this mean to me? What does it mean to them the people that are in that 50 to $75,000 income level? But they have a pass through. They have a business. What does it mean to them?

MCDANIEL: Well, it means they are going to take more money home. And it's two-fold. Two-fold in that we have cut so many regulations. The President focused on that at the first three months of his administration cutting regulations. And that is so important to the small business owner because they were so constricted by these cumbersome regulations that were preventing them from growing and being able to expand their businesses. So that.

And then with the tax cuts, they're going to take more money home. They are going to be able to invest in their businesses. They are also going to be able to help their families, this is great day for small businesses for like you said, those truck drivers, people across the country are going to benefit. And that's exactly who President Trump targeted with this huge tax reform bill.

WEBB: All right. Ed Henry brought it up a little while ago, Ronna. And I got to tell you, he has got a good point. Can the Republicans write a 30- second ad that lays out for the American people what this means, what is that ad say to the American people in 30 seconds?

MCDANIEL: Well, Republicans are putting the American people first. And we are increasing their paychecks. We are going to focus on creating more jobs. We are going to increase wages and we are going to grow this economy. And we are going to make America a better place for all Americans. And we have delivered at every turn this year. And we are just going to keep doing it, so give us some majority in 2018.

WEBB: All right. Now, let's talk about some other things. I would like to cover the things that are not always there today. It's a big day with tax cuts. Great Christmas present for Americans. But what about other things? Regulatory reform. We have immigration on the table to deal with DACA. We have so many issues. And there has been a divided points in the Republican Party. Is the party going to come together now that the President has a head of steam and with the help of the RNC go out, and do these things, border security, there is words the President is going to the border to look at these walls.

MCDANIEL: Well, so much has been accomplished in this year as we look at the year in review. You look at the judicial appointments. You look at Neil Gorsuch, you look at our Veterans Accountability Acts. You look at our increased military spending and deregulation and tax cuts. We are just going to keep doing that. The President has signaled that he wants to tackle infrastructure next year. That's something that should bring bipartisan support.

You know, there's a lot in the accomplishment column for Republicans. What have Democrats done this year? What have they accomplished? Nothing. Resist and obstruct and fighting this president at every turn even if it's in the best interest of their constituents is not a message that they're going to be able to run on in 2018. This tax bill has shown that we can come together as a party. We can govern as a party.

We have a president who is leading the way. And we are going to continue fighting for the American people. Our hand is out to Democrats. We want them to come across the aisle and work with us. But if they are not going to, we are going to get it done.

WEBB: Well, are they really going come across the aisle as we wrap this up? Because we've heard Chuck Schumer say, that Republicans are going to rue the day when they do this. Nancy Pelosi, this is the worst thing. This is Armageddon. I'm paraphrasing. You know the words that are being used. And they are not reading the bills. Nothing new for Democrats. But are they really going to come to the table?

MCDANIEL: Well, there are some senators so I think Ohio are going to be looking at 2018. Joe Manchin, Heidi Heitkamp, Joe Donnelly, John Tester, Sherrod Brown. These senators in these red states where President Trump won, they want the photo op with the President. They want to show that they are bipartisan. But so far they are totally beholden to their leadership, Chuck Schumer and Nancy Pelosi.

And when voters go to the ballot booth next November, they're going to ask, what did my senator do? And we have got real opportunities to pick up seats if they can't come across the aisle and work on anything especially middle class tax cuts and infrastructure.

WEBB: Thanks, Ronna. And by the way, great to see you, Merry Christmas to you and your family. You worked very hard in the first part of this term. So, good luck. Have a great Christmas. You deserve a break.

MCDANIEL: Merry Christmas. Merry Christmas. Thank you, David.

WEBB: All right. Meanwhile, those liberals over at MSNBC, they have been trashing the President's tax plan. But it turns out they shouldn't be and before we explain why. Watch this.


CHRIS HAYES, MSNBC HOST: This is something Donald Trump, with all the corruption and all the self-dealing that is swirling around Donald Trump, this tax plan proves like autocrats across the world. Donald Trump has perfected the art of the self-deal.

UNIDENTIFIED MALE: Look at them all out there like lemmings, are they going to back him on firing Mueller? Look at them. Looks like a North Korean parade.

UNIDENTIFIED FEMALE: There is a difference between giving it to the corporations and hoping that the corporations hand them out and we will see who else decides to do this and giving it directly to the American people in the form of larger tax cuts for the individuals, for the middle class and not just the wealthy or the corporations.

RACHEL MADDOW, MSNBC HOST: So the effects of the tax bill started to reverberate today as the wealthiest people and the most powerful corporations in this country started almost literally scrambling to figure out how they are going to handle all the money the Republican tax bill just gave them. So when your family's taxes go up because of this bill, you can take comfort in knowing that that's what you are paying for.


WEBB: You know, instead of attacking the GOP, tax bill, maybe these liberal hosts should be thanking President Trump. Here's why. Comcast, the parent company of MSNBC, they have announced that they will be giving 1,000 bonuses to over 100,000 employees because of the tax bill. And the FCC's actions on broad band. So think about that for a moment. Do the numbers add up to the rhetoric?

And joining us with reaction, Fox News contributor Deroy Murdock, radio talk show host and FOX News contributor Leslie Marshall and Republican strategist Noelle Nikpour. Deroy, I'll tell you, you know, you talk about the civil rights industry a lot. This is the liberal media industry selling the narrative. Do the numbers add up when the very employees of Comcast are getting millions of dollars that they will inject into the economy on their own?

DEROY MURDOCK, FOX NEWS CONTRIBUTOR: We heard from Chuck Schumer and Nancy Pelosi that this money will be going just to the CEOs and the top executives. And the day after this wonderful tax cut plan was passed. We're now finding thousand dollars bonuses for 100,000 employees. It's a $100 million if we put it in a private economy. And if you are Rachel Maddow or Joe Scarborough, maybe 1,000 bucks is not a lot of money.

But think about it, cable guy, or somebody working in customer service, call center, or maybe somebody who is working secretarial type position. That $1,000 will be quite a bit of money and very much appreciated particularly this time of year right before Christmas.

WEBB: Leslie good to see you. Is this a Christmas present for America? Come on, I know that the Democrats want to paint this as a disaster. They haven't seen it play out. But to Deroy's point, to the money going into the economy, some 200 million from AT&T going to employees, 100 million from Comcast, may not matter to the rich elitist but what about the Americans out there?

LESLIE MARSHALL, FOX NEWS CONTRIBUTOR: Let's talk about the truth. And the reason the AT&T did this. I know we want to make it altruistic but it's not. Basically the reason they did it was the $28 million tax incentive for them this year because they would get screwed next year. In addition, let's talk about the hundreds of jobs that are being taken away from individuals. The layoffs that they are having at AT&T. Over 600 of them, even more concentrated in Illinois.

WEBB: No. You are conflating layoffs.

MARSHALL: By the way, David, neither are from the Trump tax plan. The timing.

WEBB: So, why bring it into the Trump tax plan?

MARSHALL: They are protecting themselves because of the changes for them as a corporation. They actually will get a better tax break of 28 million more as opposed to they would lose 48 million more if they wait until 2018 versus 2017. They need to distribute some money and it makes them look good to say, hey, here are some bonuses. So, when you ask if it is a Christmas present, it may appear that way but that's not the reason.

Is it a Christmas present to the poor? Is it a Christmas present to the elderly? Is it a Christmas present to the disabled or to people that don't make between 300 and $700,000 a year or don't itemize their taxes. I would say, no.

WEBB: Right. Well, we know that they don't have to itemize anymore if they are below a certain income level when you look at the details. But Noelle, according to Leslie, AT&T just spent $200 million to cover $28 million. I'm not following the numbers here.


NOELLE NIKPOUR, REPUBLICAN STRATEGIST: You know, first of all, I have got to tell you something. I am really angry. I'm very angry with what the Democrats have done to spin this. Number one, let's just look at Corporation CEOs, corporations employ 152 million American people. And I am really tired of the media spin that corporation CEO and Corporate America is evil. They supply us with jobs. They're not evil.

And the last time I checked, both Democrats and Republicans, they own corporations. And the other thing that I would like to say which is just very irritating for me is the fact that, you know, this tax cut really amplifies what Donald Trump is trying to do. He got elected on the backs of the working man because the Democrats weren't representing them. And he turned, you know, blue states into red states.

Look at the ones that he won. And he has made good on that promise. They are going to see money in their paychecks. And these corporations that are giving these tax cuts, they are giving back to their employees. So, they are not evil doers, so nice try for the Democrats' narrative to spin it to where, you know, the corporations are big fat cats and they are taking home a bunch of cash. They are giving it down to their employees. And there may be one or two bad actors that Leslie can maybe, you know, trump me on, but the majority, these guys, these women and men that are CEOs of American Corporations, they are giving it back.

WEBB: All right. So, DeRoy, let's do some numbers here. And I like the fact that when you look at some of the things, we have got doubling the standard deduction, 12,000 if you are single. Eighteen thousand, I like that edition if you are a single parent and 24,000. That means if you are a household under that 40,000, under that 50,000, you've suddenly got more of your money to use on top of that. The child tax credit.

Big Democrat talking point. That is being the increased in another category for over 17 has been added of $500. So, do the numbers match Leslie's narrative?

MURDOCK: Oh, they don't. This is money people won't be able to keep in their pockets. In addition to that, if you used to pay the penalty for not having ObamaCare, that's gone. ObamaCare basically is voluntary now, if you want ObamaCare, you can you have it. If you don't want to do it, you don't have to do it any longer. There is something called 529 plan which is going to let people put money aside if they are putting their kids through K to 12 private school. Parochial school, what have you. That's a fantastic thing that Ted Cruz put in which can be very helpful, probably the biggest boost for school choice in decades, I'm sure.

And whatever AT&T's motives are. It's very interesting. A&T may figure they're going to get some kind of a special benefit from giving this bonus to their employees. But what about Comcast, Sinclair, Wells Fargo, Fifth Third Bank. I thought they see, they're all the same, all of these other people. So, whatever AT&T's motives might be, it's very interesting this other major corporations are giving these bonuses, putting money into worker, education, committing to spend more money on production, on constructing facilities and this is just within 48 hours of passage in just a few hours of this bill being signed.

I think next year is going to be a boom year for this economy. It's going to grow like crazy. And the party of no. The Democrats has said, no to this and no to all of these benefits, we will have real trouble next November going before the voters and saying, people enjoy these very beneficial things that gee, we didn't step up and allow you to have that. They voted no on all of these benefits. Shame on them. WEBB: All right. So, Leslie, let me take this to you. Democrats always talk about, let's give a tax break to the poor, right? Let's give a tax break to those people on the lower rungs of the income ladder. In this is the reveal of the ObamaCare mandate. Eighty percent of the people according to the IRS who are taxed by the ObamaCare mandate make under $50,000. Wouldn't Democrats be on board with this? After all, these people don't make much and now they don't have to pay onerous tax.

MARSHALL: David, no. And I'll tell you why. And I'm glad that you asked me that because, you know, this is one of my pet piece of the healthcare side of things. One of the reasons that both Democrats and Republicans felt that we as a nation had a need for reformation. It wasn't just the numbers. And I know everybody likes to look at the numbers. But let's look at different numbers, not the economy. Let's look at pure numbers of how many sick versus how many people to treat those sick. There are hospitals that have been closing throughout the United States because the emergency rooms have just been bombarded because people didn't have insurance care to prevent --

WEBB: All right. Leslie --


WEBB: I'm going to get Noelle in --

MARSHALL: No, I'm not, David. I'm not. I am answering your question.

WEBB: Nicole, I'm going to give you the last 15 seconds. No, no. You are going off to try and sell it, go ahead, Noelle. I will give you the last 15 second.

MARSHALL: No, I'm not. I'm answering your question, David.

WEBB: I love you Leslie. Noelle, go ahead.

NIKPOUR: All right. Well, you know, the bottom-line is this, and I know Leslie is complaining but here's the thing. The Democrats actually had a shot to get some things that they needed. Because, you know, remember, at a certain time, we weren't sure if we had enough Republican votes. And here are the Democrats sitting here in a big cluster and nobody really came forward to see if they could get some things in the bill to maybe help and vote for it. So they didn't participate. So, it's really kind of unusual that they are sitting here, you know, upset about it, and you know, crying over spilt milk so to speak when they didn't do anything for the process to get anything that they want.

WEBB: Well, you know, what? Now they can cry over spilled eggnog. Leslie, you know, I love you. Merry Christmas to you and your, I love your mom. She's a great lady.

MARSHALL: I'm not buying at all.

WEBB: Deroy and Noelle, great to see you.

MARSHALL: She's in the next room, David.

WEBB: Democrats out there go crying in your eggnog. It's Christmas season. We will keep the spilled milk.

Coming up, there is a new information tonight on two big scandals. We will tell what action Attorney General Jeff Sessions is taken, following reports that the Obama administration gave a free pass to a terrorist group.

Also, we are learning more details about the FBI's potential role in sharing the anti-Trump dossier with the media. Stay with us.


WEBB: And welcome back to this special edition of "Hannity." Major developments tonight in two big scandals. Fox News exclusively reporting that Attorney General Jeff Sessions has now ordered a Justice Department review of an Obama era law enforcement initiative called Project Cassandra. That initiative targeted Hezbollah's drug trafficking operations in the United States and abroad.

Sessions' move follows a recent political report that alleges the Obama administration shut down this initiative in order to secure nuclear deal with Iran.

Also tonight, Politico reporting that James Baker, the FBI's top lawyer was in contact with a liberal journalist David Corn of Mother Jones in the weeks before the outlet broke the first news story about the existence of the anti-Trump dossier.

Here with reaction to all of this, former Utah Congressman and Fox News contributor Jason Chaffetz and FOX News legal analyst Greg Jarrett. Gregg, let me go to you first on this with the legal aspect of this. The idea of prosecutorial discretion.


WEBB: What is it and how would you apply it to something of this scope with a billion-dollar enterprise or criminal enterprise?

JARRETT: It does not apply to this. And here's why. The federal courts have universally held that prosecutorial discretion only applies to individual cases and small groups of cases. This was a massive group of cases involving the terrorist group Hezbollah and not prosecuting them for drug trafficking as well as money laundering. You can't hide behind prosecutorial discretion for that which means that I have concerns that justice may have been obstructed here by the Obama administration.

You were not allowed to interfere in the due process of law for political purposes. It appears that the Obama administration was doing precisely that trying to curry favor with Iran on the nuclear deal. How many American lives were lost because of the influx by Hezbollah of cocaine into America?

WEBB: All right. Not just that Jason, let me bring you in on this because it's not just the lives that Gregg talks about but it's the effect on others around the world. We are talking about if this political report is to be believed then it is true if it is true, that there were 30 agencies or so involved in this. Not just one agency. This is beyond discretion. What about the different layers of this and does Congress have a responsibility here with oversight and how so?

JASON CHAFFETZ, FOX NEWS CONTRIBUTOR: Oh, I know, Congress absolutely needs to get to the bottom of this. This is exactly one of those disgusting stories where for purely political reasons so that the Obama administration can complete a deal with Iran, they turn their nose away. These investigators, they put their lives on the line. They are doing a great investigation and then it gets to the point where they are seeing that there are untold amount of drugs and cocaine coming into the United States of America via Hezbollah of all people.

And they just are there to turn a blind eye, to not prosecute, to just tone it down? I mean, Politico, hats off to them. Because this is one of the best investigative pieces of journalism given the debt, these people are on the record. They are not some anonymous source. But the author of this piece has got to be proud of the work because he has done a good job documenting this. Congress should look at it and it's a disgusting story.

WEBB: All right. So, Gregg, there are a couple things in this story, they're unsealed indictments.


WEBB: There is a filing under Preet Bharara, big critic of President Trump early in the administration. Before we move on to other issues because there seems to be a host of issues coming out of justice.


WEBB: What about those aspects of this? Can those be brought back into play?

JARRETT: It depends on the statute of limitations. We don't know the dates of the transactions that gave rise to what were supposed to be criminal prosecutions. If the statute hasn't run, those prosecutions ought to be presented in court. People indicted. People prosecuted and convicted and thrown behind bars. We just don't know. Hopefully these can still be prosecuted. But, the Obama administration may have been may have prevented that by what appears to be inappropriate, if not illegal action.

WEBB: All right. So let's go to Jason. Because I like to ask questions, especially of our former Congressman of what the inspector general's office is doing in Washington, D.C. We now have another political report. And this one is about a senior counsel, James Baker, and what may, what may have been a connection to the Trump dossier. Where is the inspector general in this? How does congressional oversight get into play here?

CHAFFETZ: Well, Trey Gowdy is the chairman of the oversight committee took up after I left. And actually the inspectors general kind of report up on a jurisdictional basis through the oversight committee. Michael Horowitz is the one that actually runs, is the inspector general at the Department of Justice for 150 employees. A massive budget. They have been doing the investigation on the Comey matter. The Hillary Clinton email matter. They have been silent. You haven't heard leaks.

And now we have seen two publicly released news reports. One back in July saying in is James Baker, the senior most counsel there at the Department of Justice was being looked at for releasing classified information to a journalist. And then just today as you said, it popped that he has been reassigned. Now, we don't know exactly why that happened or what happened there, but, you know, people like Trey Gowdy and John Radcliff on the judiciary committee. Devon Nunez of the intel committee I'm sure are going to be all over this. But I have a lot of faith in the inspector general. I think they have ruled out a lot of things.

WEBB: Let's bring you guys together on this aspect of this. We have a couple minutes to wrap this up. First to you, Greg, what can be done inside justice to work with congress to bring this to a real hearing? Not another D.C. Political hearing? Go back to Jason.

JARRETT: Share information and documents. Look, I don't believe in coincidences as a lawyer. I find it hard to believe that it's just a coincidence that James Baker, general counsel at the FBI suddenly gets reassigned at the moment of Department of Justice targets him and a criminal investigates allegedly for leaking important anti-Trump dossier material to a liberal reporter just before the election. Is that a series of fantastic coincidences? My instincts as a lawyer tell me absolutely not.

WEBB: Jason, if those aren't coincidences, the only way to find out is a real investigation. Can house judiciary get involved? Can house oversight get involved in this?

CHAFFETZ: Yes, I thinks it starts with the inspector general and the 450 employees there. I think by the end of March, you will see them come out with a definitive report. That is going to be a critical piece. It was something that myself and Elijah Cummings in a bipartisan way asked and started. I hate to say this, but I said it previously. I do think they need a change at the Attorney General's office. I don't think that Attorney General Sessions is up to the job. He needs to recuse himself of all of this. It's why we have Director Mueller. There are deep seeded systemic problems within the Department of Justice that need to be rooted out. Again, it's going to be people like Trey Gowdy and John Radcliff and host of other people there that got to get their fingers into it. They have got to file documents and follow transcribed interviews and they can do the investigation they need to do.

WEBB: Jason Chaffetz, Fox news contributor Greg Jared attorney extraordinary here at Fox have a great Christmas. Good to see you. Coming up, Democrats warning that special counsel Robert Mueller could be fired no matter what the White House says. But the White House says it's not going to happen and they still say he is going to be fired. Is the left trying to create a crisis? Stay with us as this special edition of Hannity continues.



UNIDENTIFIED MALE: Any attempt at this president to remove Special Counsel Robert Mueller from his position or to pardon key witnesses in any effort to shield them for from an accountability, or to shut down the investigation would be a gross abuse of power and a flagrant violation of executive branch responsibilities and authorities.

UNIDENTIFIED MALE: If there is a firing of Robert Mueller or pardon, both would cross a red line and undoubtedly lead to a firestorm, much as there was in the Saturday night massacre when Richard Nixon tried to do the same.

UNIDENTIFIED MALE: If they are watching that spectacle in the judiciary committee and listening to Republican members talk about a cue and talk about a coupe and talk about criminal activity in the FBI, that will encourage the President to think that he could fire Mueller with impunity.

UNIDENTIFIED MALE: If the President were to fire special counsel Mueller, our country would face a constitutional crisis.


WEBB: All right, welcome back to special edition of "Hannity." Those are several Democrats in the last few days and they are apparently trying to manufacture a false narrative that President Trump may fire special counsel Mueller. According to our own John Roberts today, sources familiar with the matter saying that President Trump is definitely not going to fire Mueller and that and all this rhetoric from Democrats, it's based on pure speculation. Joining us now with reaction we have got radio host Steve Levy, Fox News contributors, Doug Schoen and Deneen Borelli. We have all- star group to do this. This first let me go to Deneen, ladies first. Let me say this by the way, happy anniversary.


WEBB: Very happy time for you and your husband.

BORELLI: Thank you.

WEBB: All right. By the way the pardon not happening was the news. We pardon Michael Flynn, whatever. Why are they driving this narrative? The White House spokesman, Sarah Sanders said this is not happening.

BORELLI: We have gone from fake news to fake firing, David. What part of there's no intention to fire Mueller does the left not get. I think really they are desperate right now. They are desperate with their message, because all we hear is identity politics. They are desperate with the fact that they don't want any of the good news coming out of this administration to make the headlines. Look at what the economy is doing. Look at what the companies -- what the lower tax cuts will be able to reinvest in their companies and their employees, giving out bonuses. They don't want to talk about the good that is coming up. But what they are also doing is deflecting from all of the bias that we have heard within the FBI administration.

WEBB: All right. Doug, I have known you for years, you are good on messaging, you understanding what works, what doesn't. There is a huge story today. Does Mueller or the firing or predicted firing, whatever you want to call it, does it touch the story of the tax bill today? In other words, is it effective?

DOUG SCHOEN, FOX NEWS CONTRIBUTOR: Here's what I would say. When the President hinted at the possibility that General Flynn could be pardoned, when he said "we'll see." I think that raised the specter of what a number of the Democrats talked about happening. Now, in fairness, the President has been very clear that former Director Mueller is not going to be fired and I think the Democrats and the Republicans would best focus on getting these investigations finished and completed, also look at the FBI agents for their behavior. And indeed to add a little maraschino cherry for Deneen's very happy day, I think we need also to look at uranium one and Secretary Clinton. But my focus is let's get the investigations done before we rush to judgment or politicize.

WEBB: Let me bring Steve Levy in on this. You are the new guy here. We gave you a chance to warm up Steve. You are a radio talk show host like me. You talk to people every day.


WEBB: The President said he is not going to do it. Doug is right. When you hint at something they take and run with it. Does this story override the question I asked Doug, and then what do the Democrats do next when he doesn't fire Mueller or he doesn't pardon Flynn?

LEVY: You know David, I wrote a book a couple of years ago, something called bias in the media, detailing how the coverage shifted negatively to a great extent when I shifted from when I changed my registration from Democrat to Republican. And I can tell you after what I have witnessed over the last three days in the media. I have to write a part 2. It was incredible. The last three days on these other outlets in the media would dominated by this fake story. It started when the Democratic congresswoman Jackie Spears said she heard a rumor that there might after Christmas be some type of nixonian Saturday night massacre of firings, totally unsubstantiated. But I will tell you, David, I think this was orchestrated in back rooms by Democratic operatives because you saw thereafter talking points. Senators Schumer and Warner went to the floor of the senate saying we are having a constitutional crisis. Nancy Pelosi wrote to Speaker Ryan saying you must stop this. And they were aided and abetted by the liberal media giving to this nonsense. So unfortunate because it obscured real stories that those other outlets never covered on things like uranium one. The dossier, and this Hezbollah opiate scandal.

WEBB: Deneen, it reminds me of backlash and the black lash that you put up with in the media. Is the media so intent on a story that they willing to sacrifice their business to it.

BORELLI: The credibility is in the tank, right? You have the progressive media, the liberal media. It's all one big club and they are all writing and saying the same thing. Instead of reporting the truth, the facts to Americans, they are doing a disservice to the country.

WEBB: Doug again, I mean we are businessmen and women here. To me, they are destroying their business.

SCHOEN: Well, I will say this. The lack of diversity in the media is deeply troubling. I wish I could sit here and say to Deneen and Steve Levy you're all wrong, but sadly there is more what we call fake news out there than any of us would like to say. And I'm on the other side of the aisle. I'm a Democrat but sadly what Steve reports has and does happen.

WEBB: All right. Guys. Stay with us. Coming up, Democrats appear to be ramping up their impeachment efforts again. Oh, come on. We will tell you what they are planning for 2018. Stay with us right here on Hannity.


WEBB: Welcome back to this special edition of Hannity. And ever since he took office, you know it is the President, Democrats in the media have been questioning his fitness for office, even calling for his impeachment. Take a look at this.


UNIDENTIFIED FEMALE: His motives and his actions are contemptible and I will fight every day until he is impeached. Impeach 45.

UNIDENTIFIED MALE: I rise today, Mr. Speaker, to call for the impeachment of the President of the United States of America.

UNIDENTIFIED MALE: The President's decision to end DACA was heartless, and it was brainless.

UNIDENTIFIED FEMALE: We all agree that President Trump's decision to end DACA is a despicable act of political cowardice.

UNIDENTIFIED MALE: Are we getting closer and closer to the possibility of yet another impeachment process?

UNIDENTIFIED MALE: After watching the Clinton impeachment I thought I would never see another one. I think we are in impeachment territory for the first time.

UNIDENTIFIED MALE: President Trump did a tweet last night and a tweet this morning, not Presidential.

UNIDENTIFIED FEMALE: President's fitness for office is something that is being called into question. I'm very worried about his fitness.


WEBB: Well, it's nice to know Nancy is very worried about it according to the Washington Post, and the appointment of Jerry Nadler, the ranking Democrat on the judiciary committee is a clear sign of the left's intentions to impeach the President. I don't know what they are going to charge him with. Let's not talk about the constitution. That doesn't seem to matter on that process. Still with us, radio talk show host Steve Levy, Fox News contributors Doug Schoen and Deneen Borelli. You know what? Let's go to Doug Schoen right here. What's the strategy here? What's the plan? I mean, Maxine Waters, by the way, the poverty warrior that she is, has a 4.5-million-dollar mansion on 450,000 claimed income. That is another story I need to get in, because what are they selling to their base, Doug?

SCHOEN: They are selling resist. I'm a centrist Democrat. The Party has moved far left. They recognize they can keep everybody together with one simple principle. Resist and attack Donald Trump. I would have put forward an alternative tax plan. They didn't do that. Now, in fairness, the Republicans weren't that eager to compromise the Democrats didn't want. It's all about resist and attack and ultimately, if you listen to the talking points we just heard, ultimately, move towards impeachment.

WEBB: Steve, hang on a second. I will get to you. Doug I want to take a redirect on this.

SCHOEN: Please.

WEBB: Because if the Democrats plan is to resist. And the base keeps coalescence but dwindling. How do they stay a national Party?

SCHOEN: Well, they did very well in Virginia. They did very well in New Jersey. They have won a bunch of legislative seats. They are up by double digits in the generic vote, which usually pre-stages a substantial victory in the house elections. That is the deal and that is the strategy.

WEBB: All right. Steve Levy you heard the strategy from Doug. I have got to tell you in the senate they are going to defend some 24 seats or. So and the Republicans are going to defend four, maybe six, so are the numbers really with the Democrats on this?

LEVY: Well, the numbers are with the Democrats if they take control of the house. And if they do, I think you can bet on impeachment being almost a certain at this. You have to understand Jerry Nadler, I know him because I was in New York politics during the 1990s when he first got elected into congress. He is a very smart fellow but very, very partisan. He is a pit bull. He has already said that while the election was legitimate, the President is illegitimate at this point, because of the Russian probe.

And that has been echoed by a number of other Democrats. In fact, that little blurb you had about the impeachment resolution actually got 58 votes before there had been any type of investigation that was started at all. On top of that, I saw a TV ad today by billionaire leftist Tom Stayer who is now calling for impeachment because he doesn't like the President's tax plan.

Have we come to that now, David, where if you disagree with policy it's going to be impeachable? It's scary. A lot of these folks in the Democratic Party are moving the goal post. First they said it was about, you know, collusion, they couldn't get the smoking gun. So they shifted to talk about obstruction. Not enough there. So then they start talking about the President's personal finances in the 1990s. Maybe not enough there. So we will start talking about his relationship with women in the 1980s. It really gives to say that they plan to undo the election.

WEBB: Clearly Deneen, you got women voters behind him, let me call this silly word in there, the constitution. Bill Clinton who was impeached on the 19th of this month back in 1998 had to be charged with a crime. There's to be a chargeable crime to impeach a President in the house. And, yet, nothing they have brought up in reasons works. Cases keep getting thrown out.

BORELLI: They are saying just because he is President he should be impeached. Even had Maxine Waters screaming for impeachment at a eulogy. This is how low the Democrats will go because they are so desperate. They don't like the fact that President Trump is in office.

WEBB: All right, well, guys, great to see you.

BORELLI: Good to see you.

WEBB: Steve Levy, Doug Schoen, Deneen Borelli. You do a great job. Look at this lineup, radio, television, and someone who actually tells it by the numbers. Doug, I don't know, they will throw you out of the Party.



I think they have already inched me out.

WEBB: They are resisting me, David, sometimes. All right coming up, more Hannity after the break. Stay with us.


WEBB: Welcome back to "Hannity." Unfortunately, that is all the time we have left this evening. Don't forget to set your DVR so you never miss an episode of "Hannity". You can listen to my radio show Monday through Friday 9:00 a.m. Eastern on Sirius XM Patriot 125, follow me on Twitter @DavidWebb. Listen to the staff, the team, the camera men, everybody, the producers. Have a very merry Christmas. Jesse Watters filling in for Laura Ingraham live now.

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