updated 9/20/2011 9:48:20 AM ET 2011-09-20T13:48:20

Guests: Jan Schakowsky, James Hoffa, Katrina Vanden Heuvel, Eric Boehlert,
John Nichols, Heidi Harris, Mike Papantonio


ED SCHULTZ, HOST: Good evening, Americans. And welcome to THE ED
SHOW from Portland, Oregon, tonight.

The president has officially joined the fight for shared sacrifice in
this country. The Republicans are out there crying about class warfare
even though they`re the ones who have been waging war on the middle class
for decades.

This is THE ED SHOW -- let`s get to work.

(BEGIN VIDEOTAPE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We`re already hearing
the usual defenders of these kinds of loopholes saying this is just class
warfare. I reject the idea that asking the hedge fund manager to pay the
tame same taxes as the plumber or teacher is class warfare.

SCHULTZ (voice-over): The president is standing with American workers
like never before. Will his party join him?

Tonight, Congresswoman Jan Schakowsky of Illinois, Teamsters President
James Hoffa, Jr., and Katrina Vanden Heuvel of "The Nation."

Tea Party extremist Andrew Breitbart is caught on tape.

ANDREW BREITBART, BLOGGER: We outnumber them in this country and we
have the guns. So, I`m not kidding.

SCHULTZ: Eric Boehlert from Media Matters is here.

And in Wisconsin, a secret FBI probe is rocking Scott Walker`s
administration. John Nichols of "The Nation" magazine will have the
latest.

And Mike Papantonio and Heidi Harris battle over just what is class
warfare.

(END VIDEOTAPE)

SCHULTZ: Great to have you with us tonight, folks.

There`s no doubt, Republicans have run up the national debt like
drunken sailors and President Obama, finally, is ready to take them on and
they can pick up the tab.

The president drew this line in the sand this morning. I loved it!

(BEGIN VIDEO CLIP)

OBAMA: I will not support -- I will not support any plan that puts
all of the burden for closing our deficit on ordinary American, and I will
veto any bill that changes benefits for those who rely on Medicare, but
does not raise serious revenues by asking the wealthiest Americans and
corporations to pay their fair share. We are not going to have a one-sided
deal that hurts the folks who are most vulnerable.

(EN VIDEO CLIP)

SCHULTZ: You know, this is what should have been said during the lame
duck session of the Congress, but I`ll take it now. The president let
Republicans have what they wanted for the last nine months.

You know the Bush tax cuts that didn`t work. It hasn`t created any
jobs to their satisfaction. Someone needs to pick up the bar tab. Fair
enough?

The president has thrown down the gauntlet, the wealthy have to pay
more in this country.

(BEGIN VIDEO CLIP)

OBAMA: We can`t afford the special lower rates for the wealthy --
rates, by the way, that were meant to be temporary. Back when these first
-- these tax cuts, back in 2001, 2003 they were talked about, they were
talked about as temporary measures. We can`t afford them when we`re
running these big deficits.

(END VIDEO CLIP)

SCHULTZ: A crucial pivot by the president to get more money into the
treasury. President Obama wants the top point 0.03 percent to start paying
their fair share. You got that?

"The New York Times" reported that only 450,000 Americans make $1
million or more each year in this country. Can`t they do a little bit
more?

Republicans are furious President Obama wants shared sacrifice for
millionaires and billionaires. Republican wonder boy, Congressman Paul
Ryan of Wisconsin, jumped on the president`s plan on Sunday.

(BEGIN VIDEO CLIP)

REP. PAUL RYAN (R), WISCONSIN: Class warfare, Chris, may make for
really good politics, but it makes for rotten economics. We don`t need a
system that seeks to divide people. We don`t need a system that seeks to
prey on people`s fear, envy and anxiety. We need a system that creates job
and innovation and removes these barriers for entrepreneurs to go out and
rehire people.

(END VIDEO CLIP)

SCHULTZ: Yes, right. Same old garbage. The president took direct
aim at the class warfare garbage talking point today.

(BEGIN VIDEO CLIP)

OBAMA: We`re already hearing the usual defenders of this loophole
saying this is just class warfare. I reject the idea that asking a hedge
fund manager to pay the same tax rate as a plumber or a teacher is class
warfare. I think it`s just the right thing to do.

I believe the American middle class who have been pressured
relentlessly for decades, believe it`s time that they were fought for as
hard as lobbyists and some lawmakers have fought to protect special
treatment for billionaires and big corporations.

(END VIDEO CLIP)

SCHULTZ: It is also predictable. Paul Ryan and his buddies in the
House have used the class warfare talking point for years. Are you tired
of it?

This chart shows exactly who Republicans have staged class warfare
against -- the middle class and the poor.

Now, look at this, over the last 30 years, the top 1 percent had a 40
percent jump in wealth, and the top 5 percent has had an 80 percent jump.
Folks, the numbers are what they are. I mean, this is all during the same
period.

You know, the poor has seen a decrease in wealth. Tell me about
fairness. Republicans, you know what they are? They are absolutely numb
to these numbers. John Boehner, he doesn`t give a dam about 400,000
manufacturing jobs which have been left and gone out of Ohio for those
years. He doesn`t care about those Toledo buildings and all of that
property that`s being sold off to the Chinese piece by piece.

This should be the concern. The tan man, of course, hammered the
president for asking millionaires to serve up a little bit more today.
Take a look.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: Well, I don`t believe
that class warfare is leadership. And, you know, we can get into this "tax
the rich, tax the rich." But that is not -- that`s not the basis for
America. It`s not going get our economy going again and it`s not going to
put people back to work.

(END VIDEO CLIP)

SCHULTZ: The president went after Boehner by name in his speech by
name today. President Obama said the tan man "my way or the highway"
attitude isn`t smart.

(BEGIN VIDEO CLIP)

OBAMA: So the speaker says we can`t have it my way or the highway and
then basically says my way -- or the highway. That`s not smart. It`s not
right.

If we`re going meet our responsibilities, we have to do it together.

(END VIDEO CLIP)

SCHULTZ: The president is spot on here. We need to do this together,
right?

And it`s not just Republicans who have to get their act together and
get onboard. Now, I want you to pay attention, this segment, to this,
folks, because this is where the rubber meets the road. Sixteen Senate
Democrats, an incumbent independent Senator Bernie Sanders, are up for re-
election in 2012.

Don`t you wonder where Claire McCaskill, where she needs to be with
the president on this one? I think she does.

How about Ben Nelson or Bob Casey out of Pennsylvania? Bill Nelson
out of Florida?

No Senate Democrat can hand the Republicans a victory on ending the
Bush tax cuts for the rich and ending the wars. President Obama today
threw a brick through the window and woke a sleeping giant. His own base -
- that`s who he`s waking up today.

This is so black and white, it is all about the math.

(BEGIN VIDEO CLIP)

OBAMA: Either we ask the wealthiest Americans to pay their fair share
in Texas or we`ll have to ask seniors to pay more for Medicare. We can`t
afford to do both. Either we gut education and medical research, or we`ve
got to reform the tax codes so that the most profitable corporations have
to give up tax loopholes that other companies don`t get.

We can`t afford to do both. This is not class warfare. It`s math.

(END VIDEO CLIP)

SCHULTZ: The numbers clearly show President Obama`s plan. It`s not a
liberal idea, not at all. It`s what America wants, no question about it.

Just look at the numbers. Over two dozen polls taken this year, 64
percent of Americans want tax increases to be part of any deficit reduction
package. Democrats need to hammer those numbers home. Every Democrat
needs to go home and give their local TV and radio market just a very
simple 20-second sound bite.

Now, here comes the little coaching from Big Eddie here. Here`s how
it ought to sound in your local market.

(BEGIN AUDIO CLIP)

SCHULTZ: I support the president because 98 percent of the American
people will not be obligated to pay more. It`s long overdue that we pay
for the wars in Iraq and Afghanistan and not give the break to the top 2
percent. The wealthiest Americans need to pay more. That`s where America
is. That`s where I am.

(END AUDIO CLIP)

SCHULTZ: It`s called, crystal clear radio, "The Ed Schultz Radio
Show." Just go home -- just go home and say that with conviction in your
local market. You`re going to have people saying, yes. I agree with you
on that.

You know, this garbage about you can`t raise taxes on the job
creators, you know what that is? That stuff is about a fool`s errand.
It`s old stuff. It`s down the wash. It`s out the drain.

Liberals need to address the finances of America with some straight
talk the way the president did today and the 16 Democrats and one
independent who I`m definitely not worried about, Bernie Sanders, after re-
election, is just going to have to step up and say we`re with you, Mr.
President.

When does the president of the United States get total backing from
the Senate Democrats without parceling out, but if, but if, what if, what
if?

No. This is crystal clear. It`s time to have the rubber meet the
road and travel hard over the Republicans. It`s time to tell the top 2
percent, 450,000 millionaires in this country, that`s who the Republican
Party is protecting and the corporations. The president said today that he
wants to re-do the tax code. Hell, that`s what the Republicans have been
crying about for years. So, let`s get it on.

No, we`ll probably have more obstruction.

Get your cell phones out, and I want to know what you think.
Tonight`s question: will Republicans vote for any bill that asked for
shared sacrifice from the rich? Text A for yes, text B for no, to 622639.
You can always go to our blog at Ed.MSNBC.com and comment. We`ll bring you
the results later on in the program.

Joining me tonight is Congresswoman Jan Schakowsky of Illinois. She`s
the perfect guest for this segment on this story, because she has had on
the table for over a year a bill that asks the wealthiest Americans to just
do a little bit more so we can straighten out our fiscal house. you know
what I mean?

Congresswoman, great to have you with us tonight.

REP. JAN SCHAKOWSKY (D), ILLINOIS: Thank you, Ed.

SCHULTZ: I feel like -- you bet. I feel like today, the president
made a turn. Is this a turning point? Your thoughts.

SCHAKOWSKY: No question. The president took the reins today to try
to set right what the Bush administration did. The three things that
really caused the debt and the deficit, and that is the tax cuts that he
gave to the rich, unpaid for, the two wars that were unpaid for. And, of
course, the great recession that Wall Street created under his watch.

And all three are addressed here, taxing the rich now, paying their
fair share, ending the wars. And that`s $1 trillion that we`ll bring home
and the third thing -- the third thing was to create jobs and that is going
to stimulate the economy.

SCHULTZ: Sure.

SCHAKOWSKY: So, all three parts of the deficit are being addressed.

SCHULTZ: All of these tax cuts that have been given out to the,
quote, "job creators" had been far short of what they thought it was going
to be. But the key now, is it not, coming up in the election year, for the
Democrats to be on the same page, to collectively say and maybe even go so
far as assigning a pledge that it`s over for the rich. You`ve had it for
10 years.

Do you think the Democratic Party will follow the president on this?

SCHAKOWSKY: Well, it certainly should. You know, the nerve of them
to talk about class warfare when all of the growth and the economy, all of
the wealth in the economy has gone to the richest Americans.

And this has not been some sort of natural disaster or an act of God.
This has been their policies that have driven the money upward. And you`ve
been talking about the destruction of the middle class for a long time,
that`s the kind of class warfare, the rich won so far.

And so, Democrats now who have always been the party to stick up for
ordinary Americans need now to stand behind our president who has the plan
to set us on the right track and bring back this kind of balance when all
people do well. If we don`t have a robust middle class in this country,
Ed, you know darn well that our country can`t compete in this world.

SCHULTZ: Well, you got no disposable income by the middle class. I
don`t know how your economy is going to be digging out of the ditch. I
mean, but I will tell you what, this is the president that I supported, and
this is the president that I`ve been waiting for, and you can`t fault him
for having olive branches coming out of the White House left and right.
He`s done everything he possibly can.

So, the final question quickly for you tonight, Congresswoman, do you
think this is a winner for the president? Do you think this is the
beginning of him running against the Congress and being victorious?

SCHAKOWSKY: Yes, I do. And you talked about those polls one after
another that says the American people believe that they should be -- that
we should be taxing the ones who have benefited most, not the middle class,
not our senior citizens, not the poor. I think this is a winner for the
president and for the Democrats, the 16 Democrats you talked about.

SCHULTZ: Congresswoman Jan Schakowsky of Illinois, with us here on
THE ED SHOW tonight -- thanks so much.

Now let`s bring in the president of the International Brotherhood of
the Teamsters, James Hoffa.

Mr. Hoffa, always great to have you with us tonight.

JAMES HOFFA, JR., TEAMSTERS PRESIDENT: Nice to be here.

SCHULTZ: What is your response -- you bet. What is your response to
this class warfare stuff that the Republicans are throwing out there? What
would be your off-the-cuff response to that?

HOFFA: Well, it`s more of the same. You know, the minute they start
talking about, you know, taking the proper tax that rich people should be
paying, it`s class warfare. But they`re the first ones who say the poor
and the people who are workers every day, they should pay more for Social
Security or for Medicare.

So they want to basically balance the budget on the back of working
people and the ones that should be doing it according to the polls,
according to the president, that basically the rich, the multimillionaires
and the billionaires. So, I think it`s a great idea and I think I`m so
proud of the president to finally be standing up. You know, he had to draw
a line in the sand.

I think he learned a bitter lesson when he had that battle over
increasing the debt ceiling because he realized he can`t deal with these
people. You can`t be reasonable with people that do not want to be
reasonable. And basically he had a bitter lesson and I think this is the
reaction.

He`s saying, I got to take these people on. I`m going to do the right
thing. And you know what? His base is now saying, as far as the
Teamsters, as far as working people are saying, finally, he`s speaking out
like he should. He`s talking about basically making the billionaires and
millionaires pay their fair share.

The equality of sacrifice is what we`ve been talking about. And they
aren`t paying their fair share. They`re paying 15 percent, while somebody
else with a W-2 is paying 30 percent. That`s not right and we got to
basically start talking about that.

He`s got the public behind him. He`s got to run with his ball and
make sure this is the issue that he takes to the Congress next year.

SCHULTZ: And, Mr. Hoffa, when he talks about the corporate tax rate
and tax reform, does that concern labor leaders at all about what this
could mean for blue-collar workers in this country, wage earners in this
country? What about that?

HOFFA: Oh, not at all. We basically know that 20 of the biggest
corporations don`t pay taxes at all, or pays so little tax. These are
billion dollar corporations like General Electric, Pfizer, Caterpillar.
They don`t pay taxes and yet, they say, oh, the taxes are too high. How
can they be too high if they`re not paying taxes?

So, to me, it`s elementary that we have to have a big change in the
way we collect taxes in this country. We cannot let anybody escape. We
can`t let people come here like General Electric and make billions of
dollars and they actually got a rebate back. Can you believe that? They
got a $320 million rebate after they didn`t pay any taxes.

So, we realize that`s not right. But, basically, you know, this idea
of somebody paying 15 percent, these billionaires and millionaires paying
15 percent while working people are paying 30 percent, that is wrong. And
that`s going to be the issue.

And, finally, the president is speaking out and I applaud him for what
he`s doing.

SCHULTZ: Mr. Hoffa, good to have you with us tonight. Thanks for
your time. I appreciate it.

HOFFA: Thanks.

SCHULTZ: Remember to answer tonight`s question there at the bottom of
the screen. We want to know what you think.

It looks like President Obama may finally be prepared to take this to
the Republicans. Katrina Vanden Heuvel joins me next.

And later, Andrew Breitbart is attacking public workers. Stay tuned.
We got some shocking videotape to show you.

You`re watching THE ED SHOW on MSNBC.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW.

So, just how are millionaires reacting to the possibility of their
taxes going up? Well, earlier tonight, Bill O`Reilly, I guess you can say
he was on full alert when it comes to freak-outs, whining about how the
president wants to raise his taxes.

(BEGIN VIDEO CLIP)

BILL O`REILLY, FOX NEWS: If you tax achievement, some of the
achievers are going to pack it in. Again, let`s take me. My corporation
employs scores of people. They depend on me to do what I do, so they can
make a nice salary.

If Barack Obama begins taxing me more than 50 percent, which is very
possible, I don`t know how much longer I`m going do this. I like my job,
but there comes a point when taxation becomes oppressive.

(END VIDEO CLIP)

SCHULTZ: You know, Bill, I just don`t know how you`re going to make
it on that $10 million a year salary. I don`t know how you`re going to do
it, because then you`ll be down to $5 million. How the hell are you going
to make it, dude?

Of course, Bill O`Reilly is totally mischaracterizing the effect of
asking wealthy Americans to pay their fair share.

But if the Obama tax plan is going to get Bill O`Reilly to pack it in,
sounds like yet another reason to support the Obama tax plan, you think?

You can go to our Web site and sign the petition to raise taxes on the
guy who`s looking out for you, Bill O`Reilly. It`s the best thing for
America in so many, many ways.

Coming up, Mike Papantonio and Heidi Harris -- they go head to head on
this one. And when we come back, Katrina Vanden Heuvel of "The Nation"
joins me.

Stay with us. You`re watching THE ED SHOW, on MSNBC.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW.

Speaking of Bill O`Reilly having a hard time making it, how is Warren
Buffett going to make it? Well, he`s not the only rich American willing to
stand up and say rich Americans are not taxed enough.

Billionaire Mark Cuban put it this way, "Be patriotic, go out there
and get rich. Get so obnoxiously rich that when that tax bill comes, your
first thought will be to choke and how a big a check you`re just going to
have to write, your second thought will be, `what a great problem to have,`
and your third should be a recognition that in paying your taxes you are
helping to support millions of Americans that are not as fortunate as you."

How come nobody on FOX thinks that way? Folks, it`s about fairness
and it`s something President Obama is trying to bring back into the system.

(BEGIN VIDEO CLIP)

OBAMA: For us to solve this problem, everybody, including the
wealthiest Americans and biggest corporations, have to pay their fair
share. Middle class families shouldn`t pay higher taxes than millionaires
and billionaires. That`s pretty straightforward. It`s hard to argue
against that.

(END VIDEO CLIP)

SCHULTZ: But, of course, Republicans do argue against it.

Let`s bring in the editor and publisher and part owner of "The Nation"
magazine, Katrina Vanden Heuvel.

Katrina, always a pleasure. Great to have you with us tonight.

KATRINA VANDEN HEUVEL, THE NATION: Thank you, Ed.

SCHULTZ: I said in the opening segment, I think the president kind of
turned the corner tonight. But seriously, this is a winning issue -- when
you have 98 percent of the American people that are not going to be
affected by any kind of a tax increase, is President Obama finally ready to
make it and take it to the Republicans?

VANDEN HEUVEL: It seems that way. He is drawing the right fights,
picking the right fights, drawing the right lines and setting up the debate
for 2012.

I mean, listen, he can run against the party of millionaires and
billionaires. He has the vast support, the majority of Americans are on
his side. And I think what we`re seeing is the president looking ahead to
2012, understanding that he needs people, people power, at his back because
progressives and citizens of conscience and enlightened economic patriots,
patriotic millionaires have said we need to redirect the course of this
country. We need progressive taxation and we need to protect the very
programs that have made this a great country.

And I think he`s got a name for his program, fair share. It`s fair
share time, Ed, in America, and let`s, you know, let`s fight for that.

SCHULTZ: You know, this president has had a habit of shying away from
political fights. Has he turned the corner? Is this going to be a
different 13 months for this administration and this president from here on
out? What do you think?

VANDEN HEUVEL: It better be because, you know, this election coming
up -- the president has too often ceded territory to not even
conservatives, Ed. I think the reactionary extremists in this country
should have shamed those true conservatives who have always stood for
something a little better than this Tea Party and these extremists.

So I think the president now understands he needs to fight, but it`s
bigger than that and we`re at a crossroads in this country and it`s a
crossroads for the Democratic Party. If he wants to stand for some core
convicts that has made it the party of working people, supporting the most
vulnerable, justice, fairness in terms of the economic programs in this
country, this is the moment.

Do you know, Ed, that in Tahrir Square when we saw people protesting
this past year, that inequality in America is greater than inequality in
Egypt? We can do better. This is a very rich country and fair share is
what it should be about.

And, Ed, when we talk about shared sacrifice, you know, it`s kind of
an affront because when you think about it, most people have been shafted
in these last 20, 30 years. It`s time to reset the course of our politics.

And if the president steps up, I think real reform in this country has
come about with an enlightened president in coalition with energized
people, with movements and that`s what I think we have to look at now
looking ahead.

SCHULTZ: The dynamic here is going to be very interesting. Can the
president energize people that supported him in 2008? Because I think it`s
fair to say that it`s going to be awfully tough for the job market to get
any better between now and the next election, because the Republicans will
obstruct everything. They`re going to, you know, road kill just about
everything we put out there.

And so, the president is going to have to continually make this case
that, look, 98 percent of the American people aren`t going to get hit and
we got to have a shared sacrifice.

VANDEN HEUVEL: Absolutely. Well, we got -- he`s got to show who`s --
you know, he`s got to show the contrast and he`s got to show that this is a
grand old obstructionist party. He`s got to come forward and be clear and
stay on message and talk -- talk clearly about the foundations of a new
economy and sell, you know, what he`s done and what he plans to do.

But there`s a feisty populism of the best kind that we`re hearing from
him, and that`s important at this stage in this country`s history
sometimes.

SCHULTZ: Yes. He -- I hope he turned the corner today. I hope he
does it every single day.

VANDEN HEUVEL: We got to stay behind him, Ed. You do, too. OK.

SCHULTZ: Well, I am behind the president because --

VANDEN HEUVEL: No, but we have to keep pushing him. You do.

SCHULTZ: OK. Well, that hasn`t been my problem.

VANDEN HEUVEL: No problem, I know. We don`t have that problem, but a
lot of people need to push him.

SCHULTZ: That`s true. Katrina, great to have you with us. Thank you
so much.

VANDEN HEUVEL: Thank you.

SCHULTZ: Coming up, millionaire Congressman John Fleming whines about
only making $400,000 from his Subway and UPS businesses. I`m shipping the
congressman straight into the zone.

And Wisconsin Governor Scott Walker claims he doesn`t know anything
about the FBI raid on the home of one of his former top aides. We`ll find
out what`s really going down with "The Nation" magazine reporter John
Nichols.

Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: And in Psycho Talk tonight, Republican Congressman John
Fleming of Louisiana. Well, he joins the rest his party in beating the
class warfare drum.

This is a dandy. The multi-millionaire business owner says he can`t
afford a tax increase. No way. Earlier today on this network, Fleming
addressed a report saying that he made 6.3 million dollars last year from
Subway and UPS franchises that he owns.

(BEGIN VIDEO CLIP)

REP. JOHN FLEMING (R), LOUISIANA: That`s before you pay 500
employees, you pay rent, you pay equipment and food. The actual net income
of that was only a mere fraction of that amount. The amount that I have to
reinvest in my business and feed my family is more like 600,000 of that 6.3
million. And so by the time I feed my family, I have, you know, maybe
400,000 left over to invest in new locations, upgrade my locations, buy
more equipment.

(END VIDEO CLIP)

SCHULTZ: What? Folks, I want to know what this guy`s eating if he
spends 200,000 dollars feeding his family. Let`s see, quick math here.
That`s 16 grand a month. That`s four grand a week. Chris Christie doesn`t
even spend that much on food. What is this guy eating?

If Fleming needs advice on how to cut back on his food budget, I bet
he could go into his district and find a single mom who is feeding a couple
of kids while working for minimum wage.

If it`s really so bad to only have 400,000 dollars left over, maybe
it`s time Fleming started thinking about turning his Subway stores and his
UPS stores over to somebody who could probably do it in a better fashion.
He`d still be able to keep his high-rolling eating habits, couldn`t he?

As of 2009, this congressman, his net worth was somewhere between 2.1
and 16.8 million dollars, putting him, my friends, among the highest 10
percent of members in the House of Representatives when it comes to wealth.
Congressman, there`s no doubt Americans hate taxes. But what they really
hate is a wealthy whiner.

So for Congressman Fleming to whine about only having 400 grand to
play with is unbelievably known as elitist Psycho Talk.

Coming up later in the show, Mike Papantonio and Heidi Harris will
have their say on the president`s deficit reduction plan. And Andrew
Breitbart tells Tea Partiers to fire the first shot. Eric Boehlert of
Media Matters weighs in on that. That`s next. You`re watching THE ED SHOW
on MSNBC. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW, and thanks for watching
tonight. Now, this is the comment here, and this is one of the most
outrageous things I think I`ve ever heard. "We outnumber them and we have
the guns." That`s a direct quote. That was right wing commentator Andrew
Breitbart. It`s what he told a Massachusetts Tea Party group of people
about their advantage over progressives.

Breitbart suggested that literal armed combat is the best way to go.

(BEGIN VIDEO CLIP)

ANDREW BREITBART, CONSERVATIVE COMMENTATOR: And so there are times
where I`m not thinking as clearly as I should. And in those unclear
moments, I always think to myself, fire the first shot, bring it on,
because I know who is on our side. And they know that. They can only win
a rhetorical and propaganda war.

They can not win. We outnumber them in this country and we have the
guns. So -- I`m not kidding. They talk a mean game. But they will not
cross that line because they know what they`re dealing with. And I have
people who come up to me in the military, major named people in the
military, who grab me and they go, thank you for what you`re doing. We`ve
got your back.

(END VIDEO CLIP)

SCHULTZ: Joining me now is Eric Boehlert, senior fellow at Media
Matters with us here tonight on THE ED SHOW. Eric, good to have you with
us. I think the key sound bite in there was clarification that he says I`m
not kidding. Is this for real? What do you make of this?

ERIC BOEHLERT, MEDIA MATTERS: Yes, it is. I mean, the stipulation is
-- these clips were put online. We haven`t seen one long clip, but I`m
told nothing has been edited out. There`s been no pushback from Breitbart
that this was inaccurate or anything like that.

Look, this is right-wing paranoid fantasy at its worst. And it is
incitement. Painting this picture of a looming revolution on the left,
somehow that nurses and teachers and firefighters are going to take to the
streets with guns, I mean, it`s very dangerous. And it`s very much out of
the Glenn Beck playbook.

I hope Glenn Beck has room in his bunker of doom for Andrew Breitbart
because he`s playing the same dangerous game. And this delusional talk
that three and four-star generals are going to dispatching troops to
Breitbart`s Hollywood home when the Civil War starts? Give me a break.
This is just completely off the --

SCHULTZ: Breitbart also zeroed in on another target. I want to play
another clip for you. Here it is.

(BEGIN VIDEO CLIP)

BREITBART: They are bullies on the playground. And they`re starting
to realize what if we were to fight back? What if we were to slap back?
These unions thugs, these public sector union thugs. I`m just waiting.
Bring it on. I am sick of it.

I am sick of this Trumka guy. I`m sick of this John Sweeney guy. I`m
sick of the SEIU. I`m sick of them going to people`s homes, executives`
homes and showing up. So there`s just a part of me that wants them to walk
over that line.

(END VIDEO CLIP)

SCHULTZ: Can we now label Andrew Breitbart a true revolutionary with
a platform? A guy that`s on Fox News whenever Fox wants to go after
somebody? This is the guy that called me out for the Rick Perry black
cloud comment, which, of course, we corrected the following night because
there was an editing error. And we admitted to that on this program. I
mean, but -- you know, this guy has a platform, Eric.

BOEHLERT: Yeah.

SCHULTZ: He`s on Fox a lot. And this guy, is he now a revolutionary?

BOEHLERT: Well, we can label him wildly irresponsible. These are the
people that stage Tea Party rallies, that show up with loaded guns, which
show up with Swastika and Nazi posters. And now they`re the -- they
denigrate the president every possible way. They use incredibly blatant,
violent language. And now they`re the ones telling us that the liberals
are the ones who pose a physical threat to this country?

Look, he`s on Fox News. But let`s be clear, he`s also in the
mainstream media. And it`s time for the mainstream press to just see him
for what he is, and just being incredibly irresponsible. This notion that
union workers in America pose a physical threat to this country is crazy.
It`s off the reservation and he ought to apologize, but he never will.

SCHULTZ: Eric Boehlert, Media Matters, good to have you with us.
Thanks so much.

To watch Breitbart`s comments in full, go to our website,
Ed.MSNBC.com.

Coming up in my Playbook, a secret FBI investigation reportedly
involves several former top aides to Wisconsin Governor Scott Walker. John
Nichols, he always has the story when it comes to the Badger State. That`s
next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ED ROLLINS, REPUBLICAN STRATEGIST: Right now, she`s competing hard in
Iowa. She doesn`t have the ability or resources to go beyond that in Iowa
at this point in time.

(END VIDEO CLIP)

SCHULTZ: That was Michele Bachmann`s former campaign manager, Ed
Rollins, revealing that the Republican presidential hopeful doesn`t have
enough cash to get past the first caucus. And it`s no wonder donors aren`t
so eager to open up their wallets.

The Minnesota congresswoman seemed caught off guard when "Tonight
Show" host Jay Leno asked her to explain why the Bachmann family clinic
reportedly offers so-called reparative therapy.

(BEGIN VIDEO CLIP)

JAY LENO, "THE TONIGHT SHOW": That whole pray the gay away thing, I
don`t get that.

REP. MICHELE BACHMANN (R), PRESIDENTIAL CANDIDATE: Well, see, I think
-- when I heard that, I really thought it was like a kind of a mid-life
crisis line, a pray away the gray away. That`s what I thought it was.

LENO: You know what I`m saying. But, you see, to me, when I was a
kid, they used to try to teach me to be right-handed. You`re left-handed.
That is the hand of the devil. To me, it`s the same thing with gay.

BACHMANN: The whole thing with our clinic is whatever issue anyone
has, we don`t discriminate. If they come into our clinic and someone has
an issue, our therapists deal with whatever the issues are.

(END VIDEO CLIP)

SCHULTZ: Leno also asked Bachmann about Afghanistan, the debt ceiling
and to explain why she chose to tell a story linking the HPV vaccine to
mental retardation.

(BEGIN VIDEO CLIP)

BACHMANN: Well, I wasn`t speaking as a doctor. I wasn`t speaking as
a scientist. I was just relating what this woman said.

(END VIDEO CLIP)

SCHULTZ: Now Bachmann says that she was surprised that Leno had asked
her about current events.

(BEGIN VIDEO CLIP)

BACHMANN: We had had a pre-show interview and that wasn`t at all what
I was told we were going to be talking about. So I was very surprised.

(END VIDEO CLIP)

SCHULTZ: Oh, Michele, you`ve got to be ready for those tough curve
balls if you`re going to run for the presidency.

Coming up, John Nichols on an FBI investigation of Governor Scott
Walker`s former aide. That`s next. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: And in our playbook tonight, FBI investigation reportedly
involving former top aides to Wisconsin Governor Scott Walker is heating
up. "Milwaukee Journal Sentinel" reports the raid was part of a secret
John Doe investigation looking into whether county employees were doing
political work for Walker on the taxpayer`s dime when he was the Milwaukee
county executive.

Well, on Friday, Governor Walker said that he didn`t know anything
about the FBI raid beyond what was reported in the media. But his campaign
just happens to have hired representation, a former U.S. attorney who has
experience dealing with FBI investigations. How strange?

John Nichols, Washington correspondent of "the Nation Magazine," great
to have you with us tonight. You have the story live from Madison. What`s
going on here? I mean, you say -- you`ve known Governor Walker for some 20
years. Is it in his personality not to know what the heck is going on?

JOHN NICHOLS, "THE NATION": It is absolutely not in his personality.
In fact, it`s funny, right before we came on tonight, some of the crew here
in Madison in the studio were saying, you know, can you believe that?
Walker`s saying he doesn`t know about this? That doesn`t sound like
Walker.

Everyone in the state knows our governor to be a political junkie.
He`s got his finger on every aspect of the political operation and the
governing operation. It`s the one thing you can`t criticize him on. He`s
very engaged.

And what`s significant here, Ed, is that the woman whose house was
raided, Cynthia Archer, was his top political point person when he served
as Milwaukee county executive. And when he moved to the governorship, he
put her in as a top political appointee in the key agency dealing with his
budget and his budget repair bill.

She was the point person on security for the capital. Her name is all
over e-mails talking about how to lock down the capital and talking about
what to do with the protests. So the notion that he is not engaged with
what`s happening to her, isn`t aware of what`s going on with her in this
investigation, it just seems beyond the pail.

SCHULTZ: How are Democrats in the state responding to this? I mean,
elected officials, Democrats. I mean, if Cynthia Archer did work on the
taxpayer`s time for his political engine -- and of course, she was the one
who was very involved in writing the anti-union bill, the union-busting
bill -- why aren`t they talking about impeachment? Why aren`t the
Democrats going full force after this?

NICHOLS: I think people are just kind of just catching up with what
all`s happened. This was a secret investigation. It`s now in just the
last few days blown into something very public. People have become aware
that it isn`t just Cynthia Archer, who still works for the state, by the
way. They found her another 100,000 dollar year job. But also two other
former aides to Governor Walker have had their computers seized.

And it looks like this investigation is going to continue to grow.
You are hearing Democrats to say that this has got to be looked into. And
the key thing that they`re focusing on -- and I think it`s an important one
-- is the fact that this governor expanded the number of political
appointments that he can make to put his cronies into jobs all over state
government when he came in as part of that budget repair bill.

This woman, Cynthia Arches, was put into one of those political jobs
that he created.

SCHULTZ: Yeah.

NICHOLS: There`s a move now afoot in the legislature to get rid of
those political appointments and move back to civil service. But I think
you`re right, Ed. Ultimately, this is going to move to a much more intense
conversation, focused on a core question: what did the governor now, and
when did he know it?

SCHULTZ: And the FBI, of course, doesn`t have time to waste any of
their time. Where there`s smoke, there`s fire. John Nichols, always a
pleasure. Great to have you on, buddy. Thanks so much.

Republicans say the president is waging class warfare. Heidi Harris
and Mike Papantonio, I think they might have something to say about that
next on THE ED SHOW. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: ED SHOW survey tonight, I asked will Republicans vote for
any bill that asks for shared sacrifice from the rich. Two percent of you
said yes; 98 percent of you said no. Isn`t it interesting how it went
down to that number; 98 percent of the people wouldn`t be affected.

Up next, let`s see what Mike Papantonio and Heidi Harris have to say
about the president`s call for shared sacrifice and Bill O`Reilly saying he
might pack it in if the taxes go up. Wow.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW. Republicans whine about class
warfare every time Democrats ask millionaire for shared sacrifice. Ninety
eight percent of the American people will not -- will not see a tax
increase in this deal. And the rich have had the best 30 years in American
history. The battle lines are drawn. And my bet is on President Obama
this time around.

Of course, Bill O`Reilly is very upset about the fact that his taxes
might go up, so he says he might pack it in if his taxes go up. So we`re
asking all of you to go to our website, Ed.MSNBC.com, and sign that
petition to raise Bill O`Reilly`s taxes so he`ll pack it in.

Mike Papantonio with us tonight, along with Heidi Harris, two great
radio talkers, always with an opinion. Heidi, how is asking the top 0.03
percent for a modest tax increase -- how is that class warfare?

HEIDI HARRIS, RADIO TALK SHOW HOST: Well, it`s class warfare because
people who are more successful, or as President Obama likes to put it, more
fortunate, like they just lucked into their money -- why should they pay
more money, a higher percentage of their money? It`s not fair.

We should all pay exactly the same percentage, whatever that is.
There are a lot of people, as you know, who don`t pay income taxes because
they get the Earned Income Tax Credit. How is that fair to me? It`s not
fair to me. And I don`t want you, Ed Schultz, who makes way more money
than I do, to have to pay a larger percentage of your income. It`s not
fair.

SCHULTZ: Mike Papantonio, what`s class warfare?

MIKE PAPANTONIO, RADIO TALK SHOW HOST: No class warfare. This has
been a class massacre. And you know what, the millionaires and the
billionaires have won. It`s over.

All this is is an attempt at having Americans, the middle class and
poor, from digging themselves out of the rubble that have been left by the
Republicans. This isn`t class warfare. It`s a massacre.

President Obama understands that this idea of Republican shared
sacrifice is just a continuation of the story. The Republicans idea of
shared sacrifice is this, Ed: it`s where less than one tenth of one percent
of Americans control 46 trillion dollars of America`s wealth. That`s
Heidi`s America.

It`s where the bottom 50 percent of Americans control a pitiful 2.5
percent of American wealth. That`s Heidi`s America.

It`s an America right now where we have an American worker making
every one dollar for every 500 dollars that a CEO makes. That`s Heidi`s
America.

HARRIS: Two questions nobody can answer on my show, Mike.

(CROSS TALK)

HARRIS: Two questions that Mike Papantonio can`t answer, that anybody
can answer who calls my show and talks about shared sacrifice. Number one,
how much money is fair? Fair share. Give me a number, give me a
percentage. Nobody can answer that.

Number two, nobody can answer where does that money go to make
everything all better? No one I`ve ever talked to can answer those
questions. Until you do, why are you putting your hands on a millionaire`s
money? Doesn`t make sense to me.

SCHULTZ: Mike, go ahead.

PAPANTONIO: Heidi, can I tell you this. I can tell you this: for ten
years Republicans have been predators, and the American middle class and
the poor have been their prey.

HARRIS: What`s the number. Mike, fair share, give me a number.

PAPANTONIO: When it comes to shared sacrifice, we all know as
Americans that all it is is a talking point for Republicans to make -- make
us believe they have done something before -- for us in this trickle down
myth.

HARRIS: What`s a fair share? How much is a fair share? How much
should Ed Schultz pay? Give me a number.

PAPANTONIO: OK, here`s the answer. Here`s the answer. A fair share
is when we can pay for Social Security, we can pay for Medicare.

HARRIS: We could pay for it if they hadn`t raided the fund.

PAPANTONIO: We can take care of the elderly in this country rather
than putt them away like old dinosaurs. That`s your America, Heidi. And
I`m ashamed of it. You should be ashamed of it.

HARRIS: They raided the fund, Mike. And you know that. There was
money in the fund. They have raided the Social Security so-called trust
fund.

PAPANTONIO: You know who raided it, George Bush raided it Heidi.

(CROSS TALK)

HARRIS: They have all raid it had.

PAPANTONIO: George bush.

SCHULTZ: Let me ask you this. Heidi, I`d love to answer your
question, if I can quickly. It`s a judgment call. You can look at the
graphs that we`ve shown on this program as to where the income has gone
over the last 30 years and what the disposal income has been for the middle
class in this country. It`s a judgment call.

It`s hard for anybody to come out and say, hey this is the number.

HARRIS: Right.

SCHULTZ: The fact of the matter is the wealthy have an opportunity to
turn this Treasury around, if they would be so unselfish for a few years.
And after we get our house in order, maybe they could get a tax cut.

Finally, Mike Papantonio, I want to ask you, is this a winning issue
for the president? Has he turned the corner?

PAPANTONIO: It has to be his winning issue. It`s down. The game is
on. This is not a dress rehearsal right now. This is what he needs to
talk about all the way up to election. It`s a winning issue. We now know
in America who is -- who is on the side of working people.

HARRIS: Oh, please. Game on. Game is over, baby.

SCHULTZ: Heidi, you wrote a book about being a cocktail waitress.

HARRIS: I did.

SCHULTZ: Maybe you can tell me what a good tip is. We`ll have that
the next time you`re on.

(CROSSTALK)

SCHULTZ: Good to have you with us tonight. Mike Papantonio, Heidi
Harris, good sports all the time. That`s the ED SHOW. I`m Ed Schultz.
"THE LAST WORD WITH LAWRENCE O`DONNELL" starts right now. We`ll see you
tomorrow night.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY
BE UPDATED.
END

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