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

SEAN HANNITY, HOST: Republicans not only voted down the president's so-called jobs bill last week, but now three GOP senators are introducing a plan of their own to jumpstart the economy.

Now, Senators John McCain, Bob Portman and Rand Paul unveiled that plan early earlier today. Now, Senator Paul will join me in just a moment. But first, let's just say, this plan goes well beyond the president's somewhat pathetic offer of a second stimulus and may actually create some jobs.

Now, among the other things, it proposes a balanced budget amendment to the constitution, it also will repeal the health care bill and the Dodd/Frank act reduced the corporate and personal income tax rates to 25 percent. And curb expensive federal mandates on the states.

But does this have a chance of passing the Democratic-controlled Senate?

Joining me now with more on the jobs bill, and the jobs group growth act is Kentucky Senator Rand Paul. Senator, welcome back, good to see you.

SEN. RAND PAUL , R-KY.: Good to be with you, Sean.

HANNITY: You know, president's out there whining and blaming the Republicans. What happened in the Senate? I thought he had the majority of senators there?

PAUL: Well, yes. He's been saying pass it, pass it, pass it now. So now that there is a Republican jobs plan, the message goes right back at you, Mr. President. Pass it. Pass it now. Come and talk to us. But really, you know, to be serious, if we want to pass a jobs plan which we are in favor of, he needs to have a conversation, so he needs to come and talk to us about our ideas. We have a bill which Senator McCain and Senator Portman and many others in the Republican caucus are putting forward that will create jobs. We can create over five million jobs, if the president will come and talk to us.

HANNITY: All right. Let me go through item by item. I support a balanced budget amendment. I think it would show the world, we are serious about financial stability in the long term and we want to end deficit spending. I think it will be a good message to send Wall Street and the rest of the world. He's not going to support that, is he?

PAUL: I don't know. But the thing is --


PAUL: -- if we balanced our budget and we actually proposed that and passed it, I think you would see a rise in the stock market. You would see a bull market like you have never seen.

HANNITY: Totally agree.

PAUL: People in the marketplace want to see that we will be fiscally responsible.

HANNITY: All right. Repeal health care -- never happen. Repeal Dodd-Frank, not going to happen, either, right?

PAUL: Maybe not. But that's our vision for the country, we don't want to regulate a sixth of the economy. We don't want to cripple the mortgage industry and the banking industry. So, those may not happen. But the for example, the Simpson Bowles Commission did talk about lower tax rates and simplifying the rates. If we did that, you remember back when Ronald Reagan lowered the rates, we had growth of six and seven percent a year. That's how you get jobs. You need the economy to grow. You don't get jobs by, you know, getting shovel-ready projects that government does. Those are Band-Aids and those never create millions of jobs. You only get millions of jobs by getting economic growth.

HANNITY: Look, I agree with all of the things you have in here, but you know, the president seems to be a it's my way or the highway and you are hurting the country. Well, he had his way. He had both houses of Congress. He forced out legislation down the country's throat. Made, you know, grandiose promises of what would happen, none of which did. And how he said, well, it just wasn't big enough and I am going to try it again. Go ahead.

PAUL: But part of the Republican jobs plan is that we are also willing to talk with the president. But the president needs to stop and desist from pass it now, pass it now. All of this campaign rhetoric and these emotions of envy and let's go get those rich people. He needs to stop that. He needs to call us up and make an appointment to come to Capitol Hill and talk with his opponents in a reasonable, rational, non- emotional manner and we could pass a jobs package.

There are Democrats in the Senate who are for allowing money to come back from overseas at a lower tax rate. There are Democrats who are for lowering the corporate income tax because our corporate income tax is greater than most of Europe. We could get some compromise, but it would take leadership from the president. You may be right. He may not be willing to show any compromise or leadership.

HANNITY: And again, he's now -- he's aligned himself with the Occupy Wall Street crowd, which has extremist views as we have chronicled on this program. And he just, he has this rigid ideology. He doesn't seem to have the willingness to open his mind that there's any other good idea, except his idea.

In many ways I see a personality flaw in the president, it's rigid, ideology, he clings to it. Like he accuses people of clinging to their guns and religion, he seems to cling to his rigid ideology.

PAUL: Well, you know, I don't often give the president political advice. But I would give him some political advice tonight. If he wants to have a chance at winning re-election, he has to actually do something. For example, if he wants to build infrastructure and bridges, perhaps he needs to acknowledge that giving $500 million to one company, Solyndra, that's more than my state gets in an entire year for roads.

The $500 million was given to one crony of his and that's more than my whole state's funding for roads. He wants to build roads and bridges. He has to do something different.

HANNITY: Sun Power got $1.2 billion in loan guarantees themselves.

All right, I know you are supporting your dad for president. But I'm just curious, last question, what do you think of Herman Cain's 999 plan?

PAUL: I like the simplicity of promoting a plan that people can get their mind around and grasp. I don't like having an income tax and a sales tax.

Even the people who promoted the fair tax, which would be a national sales tax, one of the things they depended on was eliminating the 16th Amendment and having no income tax.

There is a danger to having an income tax and a sales tax because I'm afraid they get ratcheted up over time. Instead of 999, what I fear is 212121.

HANNITY: Why do I think that could be a possibility. Unless you have the balanced budget amendment and --

PAUL: I agree -- I take Herman Cain at his word and I think he's sincere in trying to do something good. But I fear 999 will be ratcheted up because spending has such an allure for these politicians. I wouldn't do it without a balanced budget amendment, but I also wouldn't entertain a national sales tax unless we eliminated the income tax.

HANNITY: All right, Rand Paul, good to see you. Thanks for being with us.

PAUL: Thank you.

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