updated 7/17/2012 12:28:31 PM ET 2012-07-17T16:28:31

Guests: Rick Tyler, Chuck Rocha, Van Jones, Kevin Boykin, Catherine Crier,
Jon Bramnick

ED SCHULTZ, HOST: Good evening, Americans. And welcome to THE ED
SHOW from New York.

A hundred and thirteen days before the 2012 election and the Obama
campaign has Republicans clamoring for Mitt Romney`s tax returns. Tonight,
I`ll tell you what I think Romney is hiding.

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

(BEGIN VIDEOTAPE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Governor Romney`s
economic plan would in fact create 800,000 jobs. There`s only one problem,
the jobs won`t be in America.

SCHULTZ (voice-over): The president hits Mitt Romney hard on jobs and
outsourcing and Mitt Romney hits back at a former candidate`s wife.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: John Kerry ran for
president. His wife who has hundreds of millions of dollars, she never
released her tax returns.

SCHULTZ: Just how off target is the Romney campaign?

Richard Wolffe and former Gingrich campaign staffer Rick Tyler on
Romney`s ongoing disaster.

And we`ll look at the real life impact of Mitt Romney`s outsourcing.

(ROMNEY SINGING)

SCHULTZ: The big panel weighs in on one of the toughest ads a
Democrat has ever produced.

And the Young Guns are calling him the backup.

ANNOUNCER: Young Guns, a new generation of conservative leaders.

SCHULTZ: We`ll tell you why billionaire Sheldon Adelson is dumping
piles of cash into Eric Cantor`s super PAC.

(END VIDEOTAPE)

SCHULTZ: Good to have you with us tonight, folks. Thanks for
watching.

It was another weekend of confusion and contradiction for the Romney
camp. After five interviews on Friday and a flurry of surrogate
appearances, Mitt Romney still cannot clear up the issues with his Bain
Capital record. Romney`s people are asking President Obama to apologize
for raising the issue?

President Obama gave the Romney campaign an answer on the trail.

(BEGIN VIDEO CLIP)

OBAMA: No, we won`t be apologizing. Sometimes these games are played
in political campaigns. Understand what the issue is here. Mr. Romney
claims that he`s Mr. Fix It for the economy because of his business
experience. And so I think voters entirely legitimately want to know,
well, what exactly was that business experience.

(END VIDEO CLIP)

SCHULTZ: For the American people, it comes down to what?
Responsibility. Mitt Romney cannot adequately explain his involvement with
Bain Capital between the years 1999 and 2002. The latest line is Romney
retired retroactively.

(BEGIN VIDEO CLIP)

ED GILLESPIE, ROMNEY ADVISOR: He actually retired retroactively at
that point, David, because he ended up not going back to the firm after his
time in Salt Lake City. He was actually retired from Bain.

(END VIDEO CLIP)

SCHULTZ: Just in case you thought Ed Gillespie made a mistake, he
repeated it on CNN.

(BEGIN VIDEO CLIP)

GILLESPIE: He took a leave of absence and ended up not going back at
all and retired retroactively to February of 1999 as a result.

(END VIDEO CLIP)

SCHULTZ: Did Romney give back the salary he made between 1999 and
2002 when he retired retroactively?

Look here, folks, here`s the bottom line, the SEC filings show that
Romney made at least dl $100,000 a year while he was allegedly doing
nothing at the CEO of Bain. Maybe Romney should have followed the lead of
his father. George Romney stepped down of the American Motors Corporation
when he ran for office. It was real simple.

A report in "The Nation" said, "The board elected George Romney as
vice chairman but granted him an indefinite leave of absence without pay."

Mitt Romney chose to retroactively retire. In other words, he was
double dipping. But more importantly, the Romney campaign still cannot say
who was running Bain Capital during the time in question.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Does the governor think that those are good deals
for Bain?

KEVIN MADDEN, ROMNEY CAMPAIGN: Those deals were made by -- those
decisions were made by folks that were running the company differently, so
I don`t have the details of what the decision making went into it.

(END VIDEO CLIP)

SCHULTZ: They don`t have the tails. That`s a key word right there,
key phrase. They don`t have the details.

Have you noticed how the Romney camp is kind of short on details?

Romney adviser Eric Fehrnstrom was asked, who was running Bain between
1999 and 2002? His response, "You should check with Bain, but it wasn`t
Romney."

"The Huffington Post" checked with the Security and Exchange
Commission in six different filings between April of 2000 and May of 2001.
Mitt Romney was listed as a member of the management committee at Bain.
The committee was responsible, key word there, for day to day operations of
Bain. In one filing, Romney was listed as president and managing director.

No one can have titles like this in the business world and not have
any responsibilities to a company. Romney`s answers are clouding the
issue, no doubt. It`s getting so bad for Mitt Romney, even conservative
pundits are urging him to release his tax returns to get everything out in
the open.

(BEGIN VIDEO CLIPS)

GEORGE WILL, COLUMNIST, WASHINGTON POST: Mitt Romney is losing at
this point in a big way. If something is going to come out, get it out in
a hurry.

BILL KRISTOL, EDITOR, WEEKLY STANDARD: He should release the tax
returns tomorrow. You got to release six, eight, 10 years of back tax
returns. Take the hit for a day or two.

MATTHEW DOWD, REPUBLICAN STRATEGIST: There`s obviously something
there. If there was nothing there, he would say have at it. There`s
something that compromises what he said in the past about something. So,
that`s -- but I think the bigger thing is it`s arrogance.

(END VIDEO CLIPS)

SCHULTZ: Well, Romney and his campaign insist they will only release
this year`s and last year`s returns. They`re even resorting to fake
examples, fake examples to make their case.

(BEGIN VIDEO CLIP)

GILLESPIE: Senator McCain is Republican nominee in the last election,
was the relevant standard. It`s a standard that Senator John Kerry as a
Democratic nominee said was the standard.

(END VIDEO CLIP)

SCHULTZ: Hang on a second here. John Kerry, you know what he did?
He released way more than two years of tax returns because he was running
in the Senate numerous years. In fact, by the time he was running for
president in 2004, John Kerry had released 20 years of tax returns.

Mitt Romney tried to correct the campaign`s mistake when he was on
"Fox and Friends" this morning.

(BEGIN VIDEO CLIP)

ROMNEY: John Kerry ran for president, you know, his wife, who has
hundreds of millions of dollars, she never released her tax returns.
Somehow this wasn`t an issue.

(END VIDEO CLIP)

SCHULTZ: Maybe it wasn`t an issue because Teresa Heinz Kerry, she
wasn`t running for president of the United States.

Romney and his campaign, you know what they are, they`re really boxed
in on this issue and they don`t have an answer.

Conservative columnist George Will identified Romney`s main issue.

(BEGIN VIDEO CLIP)

WILL: The cost of not releasing the returns are clear. Therefore, he
must have calculated there are higher costs in releasing them.

UNIDENTIFIED MALE: And he`s going to tough it out.

(END VIDEO CLIP)

SCHULTZ: The consequences for releasing the tax returns must be
pretty bad for Mitt Romney if he would rather just get raked over the coals
by conservative talkers for not releasing them.

Obama campaign chair Rahm Emanuel had an even better explanation.

(BEGIN VIDEO CLIP)

MAYOR RAHM EMANUEL (D), CHICAGO: The McCain campaign, he released 23
years. And he`s telling the American people, I`m not going to give you
what I have given John McCain`s people in 2008. And when he gave them 23
years, John McCain`s people looked at it and said let`s go with Sarah
Palin.

(END VIDEO CLIP)

SCHULTZ: The tax returns are essential to everything Mitt Romney is
running on. They explain his real achievements in business. They show how
he would try to run the country. They give us a look at what his tax
policy would really be and what he believes in.

Mitt Romney, I don`t think, is making the case to the American people
he would be a president that Americans can trust. It`s all about the tax
return. Number one, I`d like to know how is he listed -- general partner,
president, owner, CEO? Then he signed it, I assume he signed his own tax
return, even if he had someone else put it together. And I`m sure he did
if it`s 500 pages.

But the other thing is the business deductions. Did Mitt Romney have
any write-offs or any business deductions that dealt with Bain Capital? If
it did, he`s flat out lying to the American people who he says he had no
involvement. The IRS thought it was involvement because it deals with the
chain (ph), no question about that.

And also, maybe Mitt Romney has made the political calculation that
it`s just a heck of a lot safer and a hell of a lot easier to lie to the
American people than it is to the Internal Revenue Service.

Get your cell phones out. I want to know what you think. Tonight`s
question, what -- this is a good one -- what will do more damage to Mitt
Romney`s campaign: releasing his tax returns or not releasing his tax
returns? Text A for releasing his returns, text B for not releasing his
returns, to 622639. Our blog is right there for you, at Ed.MSNBC.com.
We`ll bring you the results later on in the show.

I`m joined tonight by MSNBC political analyst Richard Wolffe, and Rick
Tyler, Republican strategist and former communications director for Newt
Gingrich.

Gentlemen, great to have you with us tonight.

Richard, you first.

RICHARD WOLFFE, MSNBC POLITICAL ANALYST: Yes.

SCHULTZ: What is his avenue out of this mess? Out of this maze? You
do five interviews to try to clear things up. It only made things worse,
and they`re having a hard time explaining all of this. What is the avenue
of relief?

WOLFFE: The easy answer is to say release the tax returns. Actually,
there`s a step or five before that, which is first of all, decide which
avenue you`re going to take. You know, one of the problems Mitt Romney has
right now is indecision. It`s that his story keeps changing.

First of all, they said, well, you know, everyone else has done this.
That`s not true. Then you end up talking about John Kerry`s wife, which is
ridiculous. You say the Obama people will never be satisfied. Or you say
it`s a complete dodge.

They said all of these things over the last several days, and it`s a
bit like his response on the Bain question. The story keeps on changing.
If you think back to what actually happened to John Kerry. Yes, the swift
boat attacks were was terrible, but the decision, the weakness that you`re
broadcasting about your own character as a leader is -- I would argue --
just as damaging.

SCHULTZ: So he didn`t solve anything on Friday, and as we move
forward in this campaign, they don`t seem to have any clear cut answers, at
least it`s been 36, 72 hours that goes on and on. How do they fix it?
What would they come out and say to fix it?

WOLFFE: Well, he does have to take the hit. I would argue actually
that Friday`s comments made it worse. In trying to project strength and
say, "I`m punching back here," he overstepped the mark. He said I had no
active role in Bain, but I had no responsibility. That was his word.

And then you get into the buck passing thing that Rahm Emanuel
described so well.

SCHULTZ: Rick Tyler, your campaign, the Gingrich campaign, raised
these issues in the primary. Did the GOP miss it? I mean, wasn`t anybody
in the GOP beyond Newt Gingrich taking this more seriously? Why weren`t
they?

RICK TYLER, FORMER GINGRICH COMM. DIRECTOR: Well, look, if you
remember, you know, we did release these -- all these SEC documents we had
in January of this year, that was six months ago. The media wasn`t very
interested in our side. Frankly, the Romney campaign did a good job. They
won the debate with us, which was they had reframed this to an attack on
free enterprise and all of the conservative commentators bought that.

It wasn`t an attack on free enterprise, but that`s what happened.

Mitt Romney might do well to go back and try to claim the mantel of
free enterprise versus Obama`s statism. But at this point, You know, he
had opportunities in 2008 during the primary to clear this up. He decided
to delineate a very bright line in 1999 about going to the Olympics.

And documentation and salaries as you have pointed out are
inconsistent with that. He`s going to have to explain it. I think at this
point, the best thing for him to do is full transparency and get it out
here. It`s not just the Obama campaign who by the way, I think that would
be the thing they don`t want to happen, is to have him release everything,
have everybody pore through it because I suspect this is a lot to do about
nothing. I don`t think there was anything illegal that was done here.

SCHULTZ: It`s not a question of whether it`s illegal. It`s a
question about what he was doing and what the company was doing that he was
a head of in 1999 to 2003 because that`s when they were outsourcing jobs.

TYLER: Well, I disagree with your research. We`ll find out what his
tax policy is by looking at his tax return. We`ll find out things like how
much he made, and who he made it from and how he filed with, and what kind
of interest he has. I do think the American public does have some interest
in that if he`s going to run for president, which is why he needs to do
that.

SCHULTZ: Respectfully, I think we would find out what his tax policy
would be because there`s an awful lot of write-offs in there that I`m sure
that he would continue to support or he wouldn`t have taken them, and
obviously, he is not releasing it for everybody to see.

The point I made earlier is that if he took business write-offs with
Bain, with you consider that a connection to the company?

TYLER: If he could legally take write-offs, he should take write-
ooffs. Everybody should take the write-offs you`re entitled to.

SCHULTZ: He might be entitled to it --

(CROSSTALK)

SCHULTZ: On Friday, he said he had no connection to the company.

TYLER: And that`s a political problem. He said he didn`t have
decision making capacity at Bain. They negotiated -- they said he took a
leave of absence and then decided not to go back to the company, you know,
this retroactive thing. While it`s true the way they did that, it doesn`t
play politically well.

I think Romney, you know, back in 1999 when he left for the Olympics,
he should have been thinking about this. The only problem -- the only way
this is a problem is if you run for president. Otherwise, none of this is
a problem.

SCHULTZ: Well, he`s running for president and the American people
want some answers on this.

TYLER: He is.

SCHULTZ: Richard, when you take a look at how he`s handling this, how
long will it be before the Republican Party steps out? Not the people on
TV on Sunday. I mean, I`m talking about when does Newt Gingrich step up,
when is Rick Santorum, how can they be silent on this?

WOLFFE: Well, maybe that`s a question for Rick.

SCHULTZ: I`m going to get it from you first.

WOLFFE: I do think he`s the presumptive nominee at this point, and
he` there`s a window for things to go spectacularly wrong for him. So, as
long as the polls are closed and he can string this along, he`s OK.

But, you know, there could be a moment of peril here, a few more weeks
of this, if the polls really starts to move, where you get people who
suspended, quote/unquote, "suspended" their campaign.

SCHULTZ: Herman Cain, how can he be quiet? Rick Tyler, what do you
think of that? I mean, how long is Newt going to be quiet on this, three,
four weeks? What`s the date he`s going to say we have to challenge
candidate here?

TYLER: Well, that could happen, if the campaign cannot figure out a
way to dispense with these types of issues. Now we know how the Obama
campaign intends to operate, and that is they`re going to obfuscate Obama`s
record as long as they can. And that`s what they talk about.

Think of it, we`ve been talking about this now for going on five days.
In the meantime, there was a poll, there was some memo out by Newman
released a memo I think earlier today that talked about how great it was
they were a parody because Barack Obama spent $51 million and only a
parity. I would argue he spend $51 million of parody to be a parody,
that`s a good thing because this is the worst economy, the worst debt, the
worst deficit spending, you have health care which nobody wants.

SCHULTZ: He sure inherited. You`re right about that.

TYLER: No, we should not be even. Mitt Romney should be far ahead
and he`s got to fix his political problem as soon as he can be. And then
we`ll return to the economy.

SCHULTZ: Richard Wolffe and Rick Tyler, thanks for joining us. I
appreciate it.

TYLER: Thanks, Ed.

SCHULTZ: Remember to answer tonight`s question at the bottom of the
screen. Share you thoughts on Twitter @EdShow and on Facebook. We want to
know what you think.

Coming up, President Obama is going directly after Romney`s business
experience and what it would mean for America. Chuck Rocha joins me for
the discussion. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Coming up, the president went to the jugular today on Mitt
Romney`s outsourcing. We`ll show you exactly why Romney`s missing years at
Bain are so critical to the middle class voters and workers in this
country.

The right wing smear machine does a hatchet job on Obama`s remarks
about government and small business. Van Jones, he knows what that`s all
about and he`s here to weigh in later tonight.

And while Senate Leader Harry Reid warns of the influence of big money
in the election cycle, Sheldon Adelson makes a multimillion donation to a
Republican super PAC. We`ll tell you who it`s probably going to be going
to with all of the details.

Share your thoughts with us on Twitter and with us on Facebook using
the #EdShow. We`re coming right back.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW.

President Obama`s campaign is hitting its stride, and explaining why
Mitt Romney`s business experience is bad for this country. This new ad is
a big part of the Obama offensive.

(OBAMA CAMPAIGN AD)

SCHULTZ: Mitt Romney`s not the solution. He`s the problem.

It`s the ultimate statement about Mitt Romney not being for the middle
class in this country. The ad will run in nine swing states. Today,
President Obama showed more than ever he is prepared to personally take
this fight to the American people and let them decide.

Here he is in Cincinnati, Ohio today.

(BEGIN VIDEO CLIP)

OBAMA: Today, we found out there`s a new study out by nonpartisan
economists that says Governor Romney`s economic plan would in fact create
800,000 jobs. There`s only one problem. The jobs wouldn`t be in America.
They would be in other countries.

By eliminating taxes on corporations` foreign income, Governor
Romney`s plan would actually encourage companies to shift more of their
operations to foreign tax havens, creating 800,000 jobs in those other
countries.

(END VIDEO CLIP)

SCHULTZ: President Obama linked this directly to Romney`s experience
at Bain Capital.

(BEGIN VIDEO CLIP)

OBAMA: This shouldn`t be a surprise because Governor Romney`s
experience has been investing in what were called pioneers of the business
of outsourcing. Now, he wants to give more tax breaks to companies that
are shipping jobs overseas.

(END VIDEO CLIP)

SCHULTZ: And a new poll commissioned by the nonpartisan Alliance for
American Manufacturing finds that 83 percent have an unfavorable opinion of
companies that outsource, 97 percent hold a favorable view of goods made
right here in the U.S. of A.

Let`s turn to Chuck Rocha, Democratic strategist, and executive
director of the American Worker, Latino Project.

Chuck, good to have you with us tonight.

CHUCK ROCHA, DEMOCRATIC STRATEGIST: Thanks for having me, Ed.

SCHULTZ: Is it effective for President Obama to make this direct link
-- and that`s what he did today -- between Mitt Romney`s business
experience and what he would do if he were president of the United States?
Is there a connection?

ROCHA: Ed, I couldn`t agree with you more. That may be one of the
best ads I have ever seen in my entire political career and here`s why. As
you know, I grew up in east Texas and was fortunate to go to work in a
factory when I was 19 years old. There were 1,000 men and women in that
factory, including my father, my uncles and a lot of kids I grew up with my
wolf life.

In 1962, they opened the factory there. Just five years ago, they
shut the factory down, destroying 1,000 people`s lives. And, Ed, when they
walked through the factory handing out pink slips, they didn`t ask if you
were a Democrat or Republican, they were just saying this tire production
isn`t going to be here anymore and that tire production now sits in China.

Now, think about that middle-class voter sitting at home watching the
commercial. No matter if they`re Democrat or Republican thinking that`s
just not right. That could be my job overseas. That`s why this is so
devastating.

SCHULTZ: So, this is President Obama running on the compassionate
sensibilities of the American people that a lot of Americans will put
themselves in the place of that displaced worker.

(CROSSTALK)

SCHULTZ: Then, Mitt Romney of course has a record of showing a very
callous attitude towards shipping jobs overseas. I mean, is this going to
be the winning formula to win the middle class?

ROCHA: Look, there are a lot of middle class voters just like you
said, Ed, that are hurting. The whole fact of this entire election is who
can you best relate with? Mitt Romney is a good looking guy. His hair is
always a perfect shape.

But, you know, he looks like your boss. He looks like the boss you
always said he lived in a different part of town, his kids going to a
different school, he shops at a different place. He just can`t relate to
someone in the factory whose job is overseas.

When mom and pop are sitting at that kitchen table and they`ve got the
paycheck and they`ve got their bills, they`re just hoping that they`ve got
enough money to have dinner on Saturday night.

SCHULTZ: Well, I think the president has been pretty remarkable on
the campaign trail. He`s been able to take a news story about Romney and
twist a positive.

Today, the president -- I mean, he just didn`t go after Romney. I
mean, he turned this whole thing into a positive message about himself and
America. Here it is.

(BEGIN VIDEO CLIP)

OBAMA: I want to give tax breaks to companies that are investing
right here in Ohio, that are investing in Cincinnati, that are investing in
Hamilton County. I want to give incentives to companies that are investing
in you, the American people -- to create American jobs, making American
goods that we`re selling around the world, stamped with three proud words,
"Made in America".

(END VIDEO CLIP)

SCHULTZ: I mean, Chuck, if you take that comment right there and
match it up with what the Republicans have done in the Senate and all of
the obstruction, how can the president lose any of the Rust Belt states?

ROCHA: He needs to be repeating this message over and over and over
again. And every campaign that I`m working in, the made in America is over
98 percent positive no matter if it`s coming from a Democrat or a
Republican.

But the difference here is this, is that Barack Obama has a record to
stand on, and so does Mitt Romney. Barack Obama made it very clear today
or a couple days ago when he ran that ad, that there`s a true difference
between this campaign. Mitt Romney can wear all of the flannel shirts that
he wants to and go to all of the work sites and try to relate with the
workers, but at the end of the day, the American people will realize that
Mitt Romney is all flannel and no calluses.

SCHULTZ: Chuck Rocha, great to have you on THE ED SHOW. Thanks for
joining us tonight.

ROCHA: Good to be here.

SCHULTZ: The right wing freaks out over comments made by President
Obama. Van Jones will join me to discuss the conservative hysteria.

And the Obama campaign is out with a devastating new commercial
slamming Mitt Romney on his bogus record. Some are calling it the best
political ad of 2012. Our panel is going to weigh in on that, just how
effective is it.

(COMMERCIAL BREAK)

SCHULTZ: And thanks for watching THE ED SHOW.

The right wing, they are trying to find anything, I mean anything they
can, to help them distract folks from Mitt Romney`s Bain debacle. Here is
the latest in selective editing from FOX News.

(BEGIN VIDEO CLIPS)

ERIC BOLLING, FOX NEWS: Hey, small business owners, your hard work,
you 100 hours a week didn`t get you where you are, take a listen.

OBAMA: If you got a business, you didn`t build that. Somebody else
made that happen. The point is, is that when we succeed, we succeed
because of our individual initiative but also because we do things
together.

(END VIDEO CLIPS)

SCHULTZ: Now, if you only watch FOX News, you might think the
president was minimizing the hard work it takes to run a small business in
America. But in fact, President Obama was giving small business owners a
lot of credit.

He also pointed out that business folks need infrastructure and
opportunity to succeed. Here`s what the president said in context.

(BEGIN VIDEO CLIP)

OBAMA: Somebody helped to create this unbelievable American system
that we have that allowed you to thrive. Somebody invested in roads and
bridges. If you got a business, you didn`t build that. Somebody else made
that happen.

The Internet didn`t get invented on its own. Government research
created the Internet so that all of the companies could make money off the
Internet. The point is, is that when we succeed, we succeed because of our
individual initiative but also because we do things together.

(END VIDEO CLIP)

SCHULTZ: A little different, isn`t it? Never ones to let facts get
in the way of a good story, the right-wing talkers, they jumped on the
president`s comments.

(BEGIN VIDEO CLIP)

GRETCHEN CARLSON, FOX NEWS ANCHOR: I have to tell you that of all of
the Sunday talk shows and everything else that happened over the last three
days, that particular piece of sound from the president is most startling
to me.

DANA PERINO, FORMER GEORGE W. BUSH PRESS SECRETARY: I thought of this
as the John Kerry moment of the `04 campaign.

ERIC BOLLING, FOX NEWS ANCHOR: That man is a statist. He believes
the only reason America is where we are is because of government, and he`s
flat-out wrong.

RUSH LIMBAUGH, RADIO TALK SHOW HOST: I think it can now be said
without equivocation, without equivocation, this man hates this country.

UNIDENTIFIED FEMALE: It sounds like he`s running for president of
Venezuela.

(END VIDEO CLIP)

SCHULTZ: You agree with me? I mean, they are desperate.

Joining me now is Van Jones, president and cofounder of Rebuild the
Dream, and the author of the book entitled "Rebuild the Dream."

Has desperation set in yet? I mean, they are grabbing at anything
they possibly can. And after everything you went through, Van, this has
got to be somewhat comical.

(LAUGHTER)

VAN JONES, AUTHOR, "REBUILD THE DREAM": Well, listen, you know,
whenever they start ringing the fire alarm in the middle of the
conversation, stop the tape, rewind, what was being said right before?
This is the deepest form of patriotism. Here you have the president of the
United States saying something that is absolutely obvious to the whole
world and everybody in this country.

America`s government has been a partner to America`s business
community. That is a part of the beauty of America. It is deep patriotism
to point that out. It`s a lot harder to make a lot of money in other
countries. In our country, you`ve got the roads, the bridges, we have the
rule of law. All that fine print in your contracts, you don`t have to
bribe a judge somewhere to enforce them. You can make your company work
here.

SCHULTZ: Yes.

JONES: That`s the beauty of America. For him to stick up for that
and for them to say he hates America, that is their tactic. When you start
showing the most loved and the most enthusiasm for the country, that`s when
they go after him.

SCHULTZ: The Heritage Foundation called the president`s remarks a
slap in the face to hard working Americans. The Romney campaign called
them insulting. Look, they`re doing --

JONES: Well --

SCHULTZ: They`re doing everything they possibly can to get rid of the
Bain story --

(CROSSTALK)

SCHULTZ: There`s no question about that.

JONES: But let`s be clear here. You know, our parents and our
grandparents had something that was called the social contract. If you do
well in America, then you do well by America. Of course you`ve got to have
that individual initiative and climb that ladder, but once you climb that
ladder, you did well in America, you do well by America. What does that
mean?

You pay your taxes and you don`t complain about it like our parents
and grandparents did. You create good jobs here. The reason they go crazy
when people start pointing out these basic facts is they`ve created a
mythology that said the only way we got to be great was just -- we were
just the wild, wild west. Nobody pay any taxes, people just did whatever
they wanted to do.

When somebody starts pointing out the basic facts that no, no, no, we
actually made massive investments together in infrastructure, in education.
We educated a whole generation of Americans to outcompete the world. We
did that together through America`s government. It knocks down the whole
house of cards. So they have to attack. Even when the president says
something purely patriotic like he did, says America`s government is a
partner to America`s business community, they have to go crazy because he`s
talking about facts. They`re talking about mythology.

SCHULTZ: Well, you know, the best way to combat this is just come
right back at them. And don`t let them edit the tape.

JONES: Sure.

SCHULTZ: And come at them with clarity. What was -- and from your
experience, what was the biggest hurdle you faced when the right wing was
attacking you and can you relate it to what they`re trying to gin up now?

JONES: Well, you have to remember that was almost three years ago
when people were really shocked that there -- there was a time where people
had some shred of hope that maybe a FOX News or some of these people --
Breitbart and those folks, maybe they would have a shred of truth on their
side. After what happened to me and Shirley Sherrod and ACORN and
everybody else, people say hold on a second. These guys are just a pure
propaganda machine.

Now let`s be clear what they`re up to. They want to stop the
conversation from being any way positive about anything. For instance,
right now, the president has a proposal he`s pushing forward to -- that
would eliminate some of the overcharging by banks for home mortgages. Now
that`s something that red states and blue states could come together, talk
about. Republican, Democrats know --

SCHULTZ: No doubt.

JONES: -- that the interest rate is too high on these houses.
There`s real issues that we`re working on at Rebuild the Dream and other
places, but they don`t want to have any substantive discussion about what
might relieve some of the pain for the American people --

SCHULTZ: And that is --

JONES: -- because they can only win. They need -- they need American
pain to get political gain.

SCHULTZ: And that is the bottom line.

JONES: That`s the whole strategy.

SCHULTZ: Yes. Van Jones, great to have you with us.

JONES: Yes.

SCHULTZ: Thanks a lot.

Lots more coming up in the next half hour of THE ED SHOW. Stay with
us.

(BEGIN VIDEO CLIP)

SCHULTZ: It`s one of the most effective campaign ads in recent
history. And righties can`t get over it.

UNIDENTIFIED MALE: Mocking him for singing a patriotic song.

SCHULTZ: The big panel weighs in next.

Tea partiers sent to Washington to control government spending. Get
busted driving expensive taxpayer funded cars. We`ll expose the hypocrisy
ahead.

And why is billionaire Sheldon Adelson dumping $5 million into Eric
Cantor`s PAC? I`ll ask former Virginia congressman Tom Perriello.

UNIDENTIFIED MALE: They are the young guns.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW. The Obama campaign is hitting
Mitt Romney I think where it hurts. They`re out with a new commercial that
some are calling the most effective political ad of 2012. It hits Romney
on everything from his outsourcing of jobs to his offshore bank accounts.
Take a look.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: (Singing) Oh beautiful for
spacious skies for amber waves of grain. For purple mountains majesty
above the fruited plain. America, America, God shed his grace on thee, and
crown thy good with --

(END VIDEO CLIP)

SCHULTZ: Let`s bring in New Jersey Republican assembly leader Jon
Bramnick and also author and attorney, Catherine Crier, and Democratic
strategist Keith Boykin with us tonight, who just published an article
called the "Swissboating of Mitt Romney." Pretty good.

And Leader Bramnick, I`ve got to ask you first, have you ever seen a
better ad? I mean how in the world would you counter that?

JON BRAMNICK (R-NJ), ASSEMBLY LEADER: Well, stipulating he won`t be
on the "Idol" and he`s not got a great singing voice, but at the end of day
this is a guy who created jobs at Staples, at Dominos, at the Sports
Authority. At the end of the day when people go in and vote, they don`t
care if he can sing like the "Idol." They care whether he can create jobs.

SCHULTZ: Well, why does he -- go ahead.

CATHERINE CRIER, AUTHOR, "THE PATRIOT ACTS": Create jobs, that
terminology in and of itself, the Bain people themselves when all of this
first started said we`re not in this to create jobs. We`re in it to make
money for our investors. If and if -- you know, as sort of an aside
effect, you get a few jobs. That`s great. He didn`t create jobs and 4 of
the 10 big success stories for Bain during his tenure all resulted in
bankruptcy when they went down the pike.

KEITH BOYKIN, DEMOCRATIC STRATEGIST: And part of the problem, though,
is that you have people on the Republican side who are saying the exact
same thing the Democrats are saying right now. You have people like Rick
Perry who said during their primary that Mitt Romney is a vulture
capitalist who is killing jobs. You have Mitt -- you have at the same time
Newt Gingrich who was going around saying that he`s never heard of a
president who had a Swiss bank account before and called Mitt Romney a
liar.

So when the Republicans get upset about a Democrat making an attack, I
think they`re just not used to Democrats fighting back.

(CROSSTALK)

BRAMNICK: When you have 8 percent unemployment, who do you want in
charge of the economy? Do you want Barack Obama or do you want Mitt
Romney? I understand all these distractions are interesting. They create
really good TV. End of the day you --

(CROSSTALK)

SCHULTZ: It`s a distraction to say a document that he`s outsourced
jobs?

(CROSSTALK)

BRAMNICK: You can find -- you can find all kinds of details when
someone is a businessman. You can find all details to focus on. But the
voter wants to focus in on the big picture. That`s what people do when
they go into the voting booth.

CRIER: But the big -- but the big picture here is this guy gets
investors together, buys a troubled company and either, you know, borrows
money, pays themselves back enormous dividends and watches the go into
bankruptcy, or as luck would have it, maybe the company turns around.

The point is he is saying he has the prescription for an economy, and
what he has the prescription for is an investor class, a bit of venture
capitalism which doesn`t at all apply to a nation`s accounting.

(CROSSTALK)

But Catherine --

BRAMNICK: Part of it is experience.

BOYKIN: Hey, Catherine even didn`t go to the heart of it, I think,
because what the Obama campaign is doing is they`re focusing primarily on
Mitt Romney`s business experience because that`s what he says we should
focus on. But nobody is talking about his experience as governor because
he doesn`t want to talk about that because Massachusetts ranked 47th out of
50 states in job creation, and when he came in, the unemployment rate was
below the national average and when he left, it was above the average.

(CROSSTALK)

SCHULTZ: So how -- but how effective is that -- how effective is that
ad?

BOYKIN: Very effective ad. That is -- and that is a devastating ad.
You know this goes along with the Daisy ad or the Willy Horton ad or the
swiftboating ad. This is one of the most effective ads I`ve ever seen from
the Democratic campaign.

BRAMNICK: It`s only came out for about a second, a day, two days,
three days. And some of the ads --

(CROSSTALK)

BOYKIN: All right. Exactly.

BRAMNICK: This is the way American -- this is the way American
politics are.

BOYKIN: The Daily ad only run one time.

BRAMNICK: This is the good ad today.

(CROSSTALK)

BOYKIN: (INAUDIBLE) one time.

BRAMNICK: How long will that ad be shown? Another 24 hours?

SCHULTZ: But it cuts right to his record about where his money is,
about where the jobs went, and what they`re all about is creating wealth.

BRAMNICK: Democrats` perspective of his money. The average --

SCHULTZ: Jon, you show me a Republican that`s had his job shipped
overseas and I`ll show you a real unhappy worker. I mean, come on.

CRIER: And I think what I would like -- and I was telling these
gentlemen back, what I want to do from a sort of math and political
standpoint, is if you took away all of the tax breaks, all of the federal
loans that they were able to use, all of the bankruptcy laws that have been
skewed to benefit the investor class, the carried interest that allowed him
to treat his income as investment dollars, not wage income, all -- took --
take all of that away and see how well he would have done. It would be a
very different picture. And all of that is federal government tax laws.

BOYKIN: You`re getting at the heart of it.

CRIER: Yes.

BOYKIN: What the problem is that the ad illustrates and demonstrator
exactly the problem that Mitt Romney is engaging in business practices that
encourage the current crisis we have right now. So it creates the
narrative, it fits into the narrative. It`s exactly what the Republicans
don`t want to do. I`m really proud of the Democrats. They finally got
some B-A-L-L-S to be able to go out and fight for --

SCHULTZ: The Romney camp attempted to roll out a new commercial today
criticizing President Obama for reportedly rewarding Democratic campaign
donors. The ad has President Obama singing Al Green`s "Let`s Stay
Together" in the background. Well, the commercial was taken -- taken down
late this afternoon for a copyright infringement.

Bramnick, Romney refuses to name his top fund-raisers. How can he go
after President Obama while protecting the campaign from similar criticism?

BRAMNICK: Now President Obama has a better voice than Mitt Romney.
I`ll stipulate to that.

BOYKIN: We can agree on that.

(LAUGHTER)

BRAMNICK: I can agree. You know, he`s got some -- he`s got a really
good voice. But he has absolutely no experience, none whatsoever, in
managing an economy before he became president. Don`t you think it`s
inherent --

(CROSSTALK)

BOYKIN: 4.4 million new jobs.

BRAMNICK: Don`t you think it`s inherent for a person to be president
and to be successful at managing an economy to have some experience?

BOYKIN: The last two businessmen --

(CROSSTALK)

BOYKIN: The last two businessmen we had as president were George W.
Bush and Herbert Hoover. One led us into the Great Recession, the other
led us into the Great Depression. But you look on the other hand --

BRAMNICK: President Obama --

(CROSSTALK)

SCHULTZ: Catherine Crier, Keith Boykin, Jon Bramnick, great to have
you with us. Great discussion tonight. Thank you.

Coming up, the Tea Partiers say that they hate government spending,
but they`re spending lots of your tax money to ride in style. Hypocrisy on
wheels when we come back.

(COMMERCIAL BREAK)

SCHULTZ: Up next, the Tea Party, well, they rode into office by
promising to cut spending. Now, find out how much taxpayer cash they`re
spending to ride in brand new vehicles. We`ll be right back.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW.

Now let`s remember how the Tea Party, the Tea Party Republicans, they
just love to preach about cutting back on spending. They don`t want to
spend a dime for anything, but tonight, we`re learning how hypocritical
they really are.

Seven Tea Party freshmen are spending big bucks on car leases.
Minnesota Representative Chip Cravaack is the biggest spender of them all.

(BEGIN VIDEO CLIP)

CHIP CRAVAACK (R), MINNESOTA CONGRESSMAN: We`re basically broke. We
are broke, and I don`t understand that why people keep on spending money.

(END VIDEO CLIP)

SCHULTZ: Think Progress found Cravaack charges taxpayers more than
$1,000 a month to lease a Chevy Equinox. The congressman`s office told us
the lease costs more because the district is so big, but the Democrat in
the neighboring district is driving three Ford Focuses for less money.

Democrat Collin Peterson is spending fewer taxpayer dollars for three
cars and he`s getting better gas mileage, I should point out.

Wisconsin Senator Shaun Duffy is another of the Tea Party`s big
spenders. He makes a big deal about driving a used minivan.

SEN. SHAUN DUFFY (R), WISCONSIN: I still pay my mortgage, I drive a
used minivan. If you think I`m living high off the hog, I`ve got one
paycheck.

(END VIDEO CLIP)

SCHULTZ: And Duffy`s office told us today that he still drives that
used minivan. But this is Duffy`s mobile office. His staffers sent us the
picture today. Your tax dollars pay for the lease on this van. Think
Progress found Duffy`s he has spent more than $24,000 on auto leases over
the last year and a half.

It`s a lot of money, isn`t it? Pretty good travel.

And finally, Colorado`s fourth district congressman won votes with
speeches like this.

(BEGIN VIDEO CLIP)

REP. CORY GARDNER (R), COLORADO: The bottom line is the American
people, whether they`re Republicans or Democrats, want this government to
cut spending.

(END VIDEO CLIP)

SCHULTZ: Yes, they all travel the same. But Cory Gardner who`s spent
almost $21,000 leasing a brand new Ford Escape.

Tea Party freshmen have spent more than $106,000 of your money on auto
leases. It will be interesting to see if the Tea Party hypocrisy matters
to voters in their districts this November.

Tonight in our survey, I asked what will do more damage to Mitt
Romney`s campaign? Sixty-five percent of you say releasing his tax
returns, 35 percent, not releasing his tax returns.

Thanks for the response.

Up next, the sugar daddy, will he strike again? Find out why
Republicans voted tonight to protect. They voted tonight to protect a
handful of billionaires. I`ve got the story next.

(COMMERCIAL BREAK)

SCHULTZ: And in the "Big Finish" tonight, you know, they just don`t
stop, do they? The Republicans, tonight, killed the disclose act with
another filibuster. The Democrats were, what? Seven votes short. The
bill would have required groups to release the names of anyone who
contributes more than $10,000. It would have applied to both parties.
Both parties. Senate majority leader Harry Reid said the vast majority of
donationerize coming from about a dozen huge donors.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D), MAJORITY LEADER: If this flood of outside money
continues, a day after the election, 17 angry old white men will wake up
and realize they just bought the country.

(END VIDEO CLIP)

SCHULTZ: Sheldon Adelson is one of those 17 so-called angry white men
who are trying to buy the country. Adelson is a GOP sugar daddy who runs
casinos overseas. He`s funneled millions of dollars into Republican races.
Now Adelson and his wife have reportedly dropped $5 million into the YG
Action Fund. Young Guns.

The fund started this year with about $55,000. It was created to help
so-called young guns like Paul Ryan and Kevin McCarthy. But Adelson`s $5
million will probably go to this Young Gun, House Majority Leader Eric
Cantor, could really use the help in the first place.

The latest poll shows that he could have a fight on his hands this
November, 43 percent of the likely voters in Cantor`s district say that he
should be replaced, 41 percent want to send him back to Washington.

That`s well within the margin of error. $5 million could swing the
vote in cantor`s favor, but cantor`s buddies in the Senate killed the
disclose act, so we`ll never know if Adelson bought the leadership in
Congress or not.

I`m joined tonight by Tom Perriello, former congressman from Virginia,
now the president and CEO for the Center for American Progress Action fund.

Tom, great to have you with us tonight. $5 million in a congressional
race is a heck of a lot of money, isn`t it?

TOM PERRIELLO, FORMER CONGRESSMAN (D-VA): You know, it`s a heck a lot
of money just about any way you slice it. To not even know who is trying
to buy elections, who is trying to sway elections is an insult to the
American people. Particularly those in the working and middle class who
are struggling to get by.

SCHULTZ: So those are --

(CROSSTALK)

SCHULTZ: Doesn`t this just play to the sensibilities, the common
sense of American people? I mean why are the Republicans trying to just
kill this disclose act and anything to move forward?

PERRIELLO: Well, it`s a little bit like Mitt Romney and his taxes.
The question is, is the pain they get for not disclosing to the American
people worse than actually what would be disclosed? In this case, these
are people giving money because they want something in return. Mitt Romney
put out a tax proposal recently that rewards companies for sending American
jobs overseas. We`re not talking about what he did in the past.

We`re talk about his current proposals, reward company, and you see
someone like Sheldon Adelson who`s making this money overseas and we`re
talking about billions in tax returns that makes a $5 million check to them
just a good investment, and the politicians and what they expect to get
from them in return and the middle class will get stuck with the bill.

SCHULTZ: So do you think today that the Republicans probably lived up
to a promise? I mean I can imagine these people going to these
billionaires saying, look, give us a bunch of money. You`re never going to
have your name put on it. There`s going to be no disclosure of any of this
at all. Was this a payback vote?

PERRIELLO: These are Republicans that just ten years ago were saying
all we need is disclosure and then that`s enough to let people decide from
that. We don`t need caps. Well, they won that decision in a bad Supreme
Court decision, and now they`re saying forget disclosure. We don`t even
want to give voters the right to know who it is that`s buying up the
Republican politicians.

The have not a single Republican, not a Scott Brown, not a Snowe or a
Collins, cross the aisle to say that citizens have a right to know who is
trying to buy their elections is just an outrageous thing.

SCHULTZ: Well, could this help Democrats? I mean you mentioned
Scott Brown`s name, I mean Elizabeth warren and Scott brown are neck and
neck. I mean is this -- could this be a real key moment in that campaign?

PERRIELLO: Look, I know there are a lot of work in middle class folks
out there echo may have been leaning Republican. When they`re seeing what
is happening here with folks writing $100 million checks or $100 million
pledges, they know the folks don`t care a whit about the working and middle
class. In a place like Massachusetts, this could be a big factor. Someone
who ran saying they wanted to clean up Washington, then they come and get a
sweetheart deal for Wall Street speculators and then say that they don`t
want citizens to have the right to know who`s writing five-figure checks to
politicians.

They shouldn`t have to pay a price for at the polls but of course
they`re going to get a lot of money from these folks to try to muddy that
water.

SCHULTZ: Yes.

PERRIELLO: But I think the American people are a lot smarter and able
to see thought that.

SCHULTZ: Another day at the office, another filibuster by the
Republicans.

Tom Perriello, great to have you with us. Thank you for joining us on
THE ED SHOW.

That`s THE ED SHOW. I`m Ed Schultz. The "RACHEL MADDOW SHOW" starts
right now.

Good evening, Rachel.

RACHEL MADDOW, HOST" THE RACHEL MADDOW SHOW": Good evening and thank
you my friend.

SCHULTZ: You bet.

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

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