CARVILLE:   Tonight's State of the Union speech is so big the White House sent all the way to Texas to get some help. Former presidential counsel, the highly competent Karen Hughes, that's her in the red jacket, has been dragged back to Washington to sharpen the message and even do a little spinning. Given what the president promised us last year, he sure needs the help. 
BUSH:   When America works, America prospers, so my economic security plan can be summed up in one word -- jobs. 
CARVILLE:   Bob, what's he going to say tonight? 
NOVAK:   Well, I'll read to you what he's going to say. Because it's better than just making it up. 
CARVILLE:   You're right on top of things here. 
NOVAK:   OK. What he's going to say is, "Jobs are created when the economy grows. the economy grows when Americans have more money to spend and invest; and the best, fairest way to make sure Americans have the money is not to tax it away in the first place." That is the magic formula for not only -- for not only politics in America, for how the capitalist system works. Cut taxes, buddy. 
CARVILLE:   How many jobs has he created? 
BEGALA:   He has been working out that magic formula. It's snake oil, Bob. They passed his plan a year and a half ago. We've lost 2.7 million jobs since then. President Clinton raised taxes on the Novakian rich, cut taxes on the middle class, balanced the budget, created 23 million jobs. Which was better? 
NOVAK:   And you'd come up in the middle -- and you'd come up right now and say what we need is a tax increase? 
BEGALA:   No, we don't. 
NOVAK:   I don't understand that. You don't want a tax increase? 
CARVILLE:   Sir, let me tell you something. I would say right now we need to repeal the tax cuts that are in place. 
NOVAK:   You want a tax increase. 
CARVILLE:   No, we need to repeal those. We need to get back to fiscal responsibility. 
CARLSON:   You know what's interesting, James? A year and a half ago we were in a recession, last year. Do you know what the economy did last year? 
CARVILLE:   You know what? 
CARLSON:   The economy grew by 3 percent. 
CARVILLE:   I think you ought to tell all these people out here that this economy is great. 
CARLSON:   Nobody has a vested interest in a downturn the way Democrats do. 
CARVILLE:   Really? 
CARLSON:   That's absolutely right. So I will forgive you... 
BEGALA:   Who here thinks that we're in a recession? Who here thinks we're in a recession? 
CARLSON:   But we're not in a recession... 
BEGALA:   Don't argue with them. 
NOVAK:   How many of you favor lower taxes for all Americans? 
BEGALA:   All millionaires? 
NOVAK:   All Americans? 
BEGALA:   All millionaires? 
NOVAK:   How many of you are opposed to for taxes for people who actually pay taxes? For tax cuts who actually pay taxes? How many of you oppose those? 
CARLSON:   But the idea that you can say, Well we're in a recession, therefore we are. The fact is   not in a recession. Simply because you say something doesn't make it true. 
BEGALA:   The reality is, people are losing jobs, Tucker. 
CARLSON:   We're not in a recession. Are you aware of that? 
BEGALA:   The president has an economic policy that has failed. 
NOVAK:   You've got to be fair to Paul. He has his own definition of recession. He doesn't care about economists, he doesn't care about the fact that you're supposed to have two consecutive quarters with a downturn. He says if a recession is good for the Democratic Party to talk about it, then it's a recession. 
CARVILLE:   I think what you need to do is, what we need to do... 
CARLSON:   That's true. But to call a growing economy a recession is weird. 
CARVILLE:   I tell you what. You've got a great economy out there. This president's got his program. Run on it. Stand up there and say, America, you lucky to have an economy like we got. America, you lucky to have these budget deficits. America, you lucky to have an economic team that we had to fire because they were incompetent. America, you lucky to have these tariffs. America, you lucky to be losing these jobs. Stand up and run on it, baby. Take off! Jet stream. Go! Go! Go! 
CARLSON:   You're sort of forgetting the fact that the speech you just gave, the speech you just gave was a slightly more articulate version of what Democrats ran on in the midterms. And how did they do? They got spanked like a bad little girl. You know why? Because people didn't buy it. 
CARVILLE:   Just do it, man. What you need to do is tell people how lucky they are to be living in this economy. Tell these investors out there how much money they're making. 
NOVAK:   Can I ask James a question? You're a multimillionaire... 
CARVILLE:   I don't want to make this personal. I have as much money as you do. 
NOVAK:   You're a multimillionaire. You have a huge staff. You've got an estate. You've got homes all over. Aren't you ashamed to be richer -- living so rich while all these poor people you're talking about are losing jobs? Don't you hate that capitalist system? 
CARVILLE:   You know what I hate? 
NOVAK:   Huh? 
CARVILLE:   I'll tell you what I hate, Mr. Novak. I hate -- I don't like the fact that they're going to give me something and have my children pay for it. I don't like the fact that children are going to school four days a week instead of five in Oregon and they're going to give me a big tax cut. Let me finish. I don't like the fact that we have tens of millions of children that are losing their health care right now and somebody wants to do me a favor. I don't need any favors from this administration. I want -- I can give an answer. 
NOVAK:   Wait a minute. Wait a minute. A suggestion... 
CARVILLE:   You attacked me personally. 
NOVAK:   A suggestion. You just take the tax cut that you're going to get and you write a check to the government and give it back and they will cash that check. I guarantee it. 
CARVILLE:   You know what? I care about more about this country... 
NOVAK:   Are you going to write the check back? 
CARVILLE:   First of all, I care more about this country and its future, and what we need to do is, in all the -- I don't need the approval of wealthy people to validate myself. 
CARLSON:   Wait, wait, wait, I think the question is who is wealthier? We put it on the table. Let's get specific. 
BEGALA:   The president tonight is going to say something that I am absolutely stunned by. It's on this topic that James is talking about. At least it's reminiscent of it to me. Whether he's going to send his problems on to future generations. This is what he's going to say tonight, knowing this is a man who gave us a $300 billion deficit. He's going to say this, quote, "We will not deny, we will not ignore, we will not pass along our problems to other Congresses, other presidents, and other generations. We will confront them with focus, and clarity, and courage." This is a man who's sending a $300 billion bill to your children and grandchildren and he said he's not passing on problems. 
CARLSON:   This is an honest question. Simplifying something as complex as the roots of the budget deficit, which I think we can trace part of it back at least to 9/11, and saying this is something that the president -- hold on -- this is something that the president is sending on to future generations because he's a bad guy? 
BEGALA:   I have no idea what his motives are. He's a lovely man, Tucker. But he's going to to stand there and I hope this...    I hope the Secret Service puts a lightning rod up. Because I'm scared the Lord God's going to send a thunder bolt when he tells... 
CARVILLE:   I tell you what. I'll bet $20 right now he does not have the gumption and get up there after this man is passing all this debt on, all this pollution, I'll bet you $20 he doesn't get up there and have the gumption to stand up there in front of the American people and tell people... 
CARLSON:   And now we're getting unfortunately... 
CARVILLE:   I'll bet $20 he doesn't... 
CARLSON:   I'm hearing in my ear that gambling is illegal. I'll take that. Thank you very much. There was a big election in Israel today. Coming up in a CNN NEWS ALERT, Connie Chung will tell us who won. And then forget the smiles and applause. We'll focus on the bare-knuckle politics going on behind the scenes. Also our very own assessments of the state of the union. You only get them here. And then we will determine who is richer, Bob Novak or James Carville. We'll tell you. Don't go away.
