updated 3/6/2013 11:28:36 AM ET 2013-03-06T16:28:36

THE ED SHOW with ED SCHULTZ
March 5, 2013

Guests: Keith Ellison, Sam Stein, Heather McGhee, William Dobson, Annette Taddeo, Michael Eric Dyson, Frank Sharry, Elizabeth Colbert-Busch


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

Republicans are stalling the economy on purpose. They want to hurt
the president and sprint to the election as best they can. It`s all about
winning.

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

(BEGIN VIDEOTAPE)

REP. PAUL RYAN (R), WISCONSIN: The greatest threat to Medicare is
Obamacare.

SCHULTZ (voice-over): Paul Ryan is wrong. The greatest threat to
Medicare is Paul Ryan. In a major shift, the Wisconsin congressman
proposes Medicare cuts for people over 55.

RYAN: Our solution to save Medicare makes no changes for people 55 or
older.

SCHULTZ: Congressman Keith Ellison on why Ryan`s Medicare change is
bad for America.

Venezuelan President Hugo Chavez has died of cancer at the age of 58.
What does this mean for U.S. relations? We`ll bring you the latest.

A civil rights hero wants the Washington Redskins to change their
offensive name. It will take an act of Congress to get NFL owners to move
on this.

JEB BUSH (R), FORMER FLORIDA GOVERNOR: The path to citizenship, which
I would support --

SCHULTZ: Jeb Bush flips.

BUSH: We can`t continue to make illegal immigration an easier path
than legal immigration.

SCHULTZ: Flops.

BUSH: I`m for it.

SCHULTZ: And flips again.

The big panel weighs in on Jeb`s radical immigration 360.

STEPHEN COLBERT, COMEDIAN: Holy cow! My sister --

(CHEERS)

SCHULTZ: Comedian Stephen Colbert`s sister has her eye on a South
Carolina House seat. Tonight, we`re talking to Democratic candidate
Elizabeth Colbert Busch.

(END VIDEOTAPE)

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

I thought we would start with a little basketball tonight since it`s
March Madness. This gentleman was Dean Smith, one of the all-time greats
at the University of North Carolina. He perfected the four corner stall.
He would slow the game down as best he could, keep the score down, run the
clock out, and take his shot at the end of the game. And they were doggone
good at it.

Well, there is another guy in Washington who is perfecting the stall
as well -- 608 days, three hours and 58 minutes, and the clock is sticking.
This is how much time is left until -- the 2014 midterm elections. Are we
ready for this?

But wait a minute, it`s the countdown. And the only thing Republicans
care about right now is that number. They are all about running out the
clock. They will obstruct in the House. And they will deny to make sure
that nothing gets done until November 14th -- November of 2014.

Now, enter this guy name Paul Ryan. You ever heard of him? Oh, yes,
refresher course. He is back! To reintroduce the same failed ideas he
already tried.

Only this time, there is a little bit of a twist, folks. It gets
worse. Ryan is telling House Republicans in private he plans to make
changes to his Medicare plan. The changes would affect Medicare benefits
for people over the age of 55, possibly up to the age of 59.

Now, this is quite a change for a former vice presidential candidate
who ran on protecting Medicare for those over 55. He even used his own
mother as a prop to tell seniors just how he will protect their Medicare
benefits.

(BEGIN VIDEO CLIPS)

RYAN: How many of you are 55 or over? Wow.

OK. OK. How many of you are not?

All right. Our solution to preserve, protect, and save Medicare does
not affect your benefits.

If you reform these programs from my generation, people 54 and below,
you can guarantee they don`t change for the people in or near retirement.
We`re saying don`t change benefits for people 55 and above.

How many of you are 55 or over? Our solution to save Medicare makes
no changes for people 55 or older.

(END VIDEO CLIPS)

SCHULTZ: How often have we talked about health care on this program
over the last four years? A lot.

And I want you to pay attention to the fact that Ryan is bringing back
a plan that Americans have rejected in November. This is insanity, doing
the same thing over again. But now it`s even further to the right.

Here is the explanation for the change for Ryan -- from Ryan`s
spokesperson. Ryan`s reform ensures no changes for those in or near
retirement. A sharp contrast to the real harm inflected on seniors by the
president`s health care law. That`s their quote.

So, no longer 55? It`s in or near retirement, which can mean whatever
Paul Ryan wants it to mean.

Moderate Republicans in the GOP a little bit nervous tonight. An
anonymous Republican lawmaker who was in the meeting with Ryan told "The
Hill" Republicans made commitments to their constituents at age 55. If
they go back on their promise, it will be problematic for many of them.

Well, that`s good news for Democrats. You can`t trust these guys
anyway.

John Boehner, you think he cares? No, he doesn`t care. When he was
asked about the new Medicare plan, he completely brushed it off.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: I think we`ll let
them work it out, and we`ll see what outcome they get.

(END VIDEO CLIP)

SCHULTZ: Sure, let them work it out. Boehner doesn`t have to commit
to any changes. He feels extremely safe. As long as House districts are
gerrymandered in his favor, and they are.

This is why Republicans continue to obstruct with plans like the Ryan
budget. They don`t want to change the status quo when the rich are doing
so doggone well.

How did the market do today? Well, the Dow Jones closed at a report
high, how about that? Despite a near depression four years ago, the 1
percent doing real well. They`ve seen incomes rise as much as 11 percent
while everyone else has been staying flat. We talk about it all the time.

Republicans aren`t going to cut a deal with President Obama. They
don`t have to. I don`t care what it`s on.

A deal would just empower who? That guy right there, the president.
It would make him look good. That`s the last thing they want to do, give
him more juice on the road going into the mid terms.

I know it`s early, I know it is. They`re just going to keep denying
him any progress on his agenda whatsoever.

Paul Ryan`s latest plan, my friends, is not serious. It wants
attention, so we`re going to give it to them. It would hurt the nation`s
seniors. It ignores 46 million people living in poverty. It also does
nothing to help people out when they get older. It`s all to protect the
wealthy and run out the clock.

Now, think about this. If you`re 50 years old, we`ll talk to the 50-
something`s tonight. Let`s just say that this plan passes the House, which
it will, because Boehner would put it up there, all the righties would go
along with it, and then let`s say Harry Reid gets it passed to the Senate.
And you know what? The president, because he wants to compromise, he goes
along with this.

This gives people who are 50 and maybe a little older, a little over a
decade to get ready for health insurance when you`re 65. Now, a lot of
young people don`t think this way. But when you look at wages in this
country and you look where the top 1 and 2 percent have gone, and you see
where the middle class is, who in the world can put together a Medicare
bank account for themselves in a 10 or 12 or 13-year window and keep up
with medical expenses? It`s almost impossible.

Let me tell you something. They`re the same people, the same
proposals, and they are very dangerous.

And so, the president has really one option, to ask you for help. I
would make the case that President Obama needs you more now than ever if
you supported him in the election, because this is what it`s going to take
to get change in this country.

Get your cell phones out. I want to know what you think. Tonight`s
question, will Republicans ever stop trying to destroy Medicare?

Text "A" for yes, text B for no to 67622. You can always go to our
blog at Ed.MSNBC.com. We`ll bring you the results later.

I want to tell you that they haven`t changed. They`re after the New
Deal. They want to cut out all the social safety nets they can --
Medicare, Medicaid, Social Security.

Our challenge as liberals is to make sure the president doesn`t give
any ground and he stands strong. OK, let`s take it to midterm with no
progress at all. Let`s fight them on their turf. We`ll win again.

I`m joined tonight by Congressman Keith Ellison of Minnesota.

Great to have you with us, Congressman.

REP. KEITH ELLISON (D), MINNESOTA: You bet. Thank you, Ed.

SCHULTZ: Is Paul Ryan serious? Is he seriously going to introduce a
plan to cut Medicare benefits for people over 55?

ELLISON: Yes, he is. He is very serious. And really, at the end of
the day, a budget is an expression of values. Paul Ryan and the Republican
caucus is telling you what they believe in. They don`t believe in
protecting seniors. They don`t believe in making sure that there is a
social safety net for people who face hard times.

SCHULTZ: What do they believe in?

ELLISON: Well, they believe in that the rich people don`t have enough
and that the poor have too much. They believe that if you don`t have
enough money, you`re not worthy, and spending government resources on you
is a waste. And that`s pretty much what they believe.

SCHULTZ: And elections don`t matter. They have denied what happened
in November, and they are back to the same old stuff, aren`t they?

ELLISON: You`re absolutely right. As a matter of fact, if anything,
this election was a mandate for Medicare, Social Security, and Medicaid.
Both parties took their respective positions on these issues. The
president won. They lost. But they`re undaunted. They are unrepentant
and absolutely committed to undermining this important program that serves
so many people.

SCHULTZ: And the progressive caucus released a budget with a complete
balance of spending cuts to new revenue. Why are lawmakers not taking up
the charge for this budget? Why aren`t -- why with are we not seeing any
mojo on this?

ELLISON: You know what, Ed? We call it the back to work budget.
It`s a budget that invests in infrastructure, helps local and state
governments put teachers and firefighters back to work, invests in basic
medical research, and asks everybody, particularly the most fortunate, to
invest in America and pay their fair share.

We close loopholes for the oil companies and for the jets and the
yachts crew, and we do what`s right by America.

SCHULTZ: Yes.

ELLISON: So why aren`t we getting the attention? You asked. That`s
a good question.

Well, the fact is that the American people when they hear about our
budget, they always like it. As a matter of fact, there was a business
journal that took the labels off all of the plans to replace sequester, and
it was a Progressive Caucus` plan that won the day.

SCHULTZ: Sure.

ELLISON: So the fact is what we`re doing is popular with the American
people. We just got to get the information to the American people. So I
appreciate you giving me the chance to talk about it.

SCHULTZ: All right. We`re having you back talking about this. And
we`re going to detail this out, no doubt.

But disagree with me if I`m wrong, Boehner has made the calculation
that he can run this, the four corner stall, whatever you want to call it,
do the basketball analogy and take a last shot at the midterms.

They`re not going to give Obama anything. There`s not going to be any
more revenue. This is the way it`s going to be. They`re going to keep
passing their radical stuff and then run to the media and say hey, we
passed it in the House. How come they`re not passing it in the Senate?

And that`s where we`re going to be for the next, until the midterms.

ELLISON: I think that`s absolutely true. In fact, he has been very
honest. When Boehner tells you what he is going to do, I think you should
take his word on it. He doesn`t plan on cooperating with the president,
and I think that`s been well-established.

SCHULTZ: At all. At all.

Congressman Keith Ellison, good to have you with us tonight. Let`s
turn now to sam Stein --

ELLISON: Anytime. Thanks.

SCHULTZ: You bet.

Let`s turn to Sam Stein, political reporter for "The Huffington Post".
And also with us tonight, Heather McGhee, vice president in policy and
outreach at Demos.

Great to have both of you on.

Heather, you first. Is this any chance for the budget to get fixed,
for anything of any kind of significance whatsoever to move forward in this
political climate?

HEATHER MCGHEE, DEMOS: You know, I still think that there are tail
winds behind the issues of gun control and immigration. I mean, we`ve had
-- you know, a number of new cycles of just talking about spreadsheets and
budgets and job killing cuts. But the fact is the spirits of the young
people of Newtown are still haunting mothers and fathers.

SCHULTZ: But as far as Medicare is concerned, Ryan is low throwing a
joke, is he not?

MCGHEE: I mean, what he`s doing is doubling down in order to kowtow
to basically a philosophy, an anti-government philosophy from a novel he
read in high school and from the right wing of his party for an extremely
unpopular idea. It`s not just unpopular with people over 55 --

SCHULTZ: Yes.

MCGHEE: -- but people nearing retirement don`t want their children to
not have it.

SCHULTZ: Sam, does he destroy his credibility if he proposes changes
that he said wouldn`t happen?

SAM STEIN, THE HUFFINGTON POST: Yes, but that`s why I don`t think he
is going to propose them. I`m getting word from Capitol Hill confirming
reports already out there that he is backing off this idea of changing
Medicare for 56 and below. It`s going to go back to 55. I think he
probably heard some concerns from members of his own caucus.

SCHULTZ: But what about those changes for those over 55 or 56?

STEIN: What do you mean by that? As in changing the beneficiary
program?

SCHULTZ: Changing the beneficiary end of it, yes.

STEIN: Well, listen, the general philosophy stays the same, right?
It`s to change Medicare from a guaranteed health care benefit into
something that more resembles a voucher system. That`s proven unpopular
when it`s presented to the public in public polls.

SCHULTZ: So, what`s his motive here.

STEIN: They have couched it as a way to save the program by cutting
benefits when there are obviously other avenues in toward saving the
program.

he motive is to get rid of the size and scope of government in
government health care. It`s a psychological -- it`s a philosophical
battle that Paul Ryan has engaged in. And it`s something that he has
gotten more credence with as he introduced his budgets.

Keep in mind, the first budget he introduced in 2009, 38 House
Republicans voted against it. It went down overwhelmingly.

Now, it`s very likely that very few House Republicans will vote
against this budget. He`s actually gotten more power within the party over
time.

SCHULTZ: Democrats say this is all leading to Republicans replacing
the social safety net and privatizing absolutely everything. Here it is.

(BEGIN VIDEO CLIP)

REP. XAVIER BECERRA (D), CALIFORNIA: Change Medicare from a
guaranteed program into a voucher, and not just for those 65 and older, but
now we`re being told they would do this for folks well below the age of 56.

(END VIDEO CLIP)

SCHULTZ: Heather, you`ve got give them credit. They are focused,
aren`t they?

MCGHEE: They are. I mean, and if we even take a step back and look
at what else is in this budget proposal, the whole point is to try to get
to a balanced budget in the next 10 years, which would mean something the
size of the sequester in terms of cut four times over --

STEIN: Yes.

MCGHEE: -- for the next 10 years, which is just absolutely the
opposite of what our economy needs to get back on track. We`re talking
about guaranteed job losses.

(CROSSTALK)

STEIN: It`s sort of remarkable that last year`s budget put that
objective at 2040. And this year they want to balance the budget by 2023.
We`re about talking incredible cuts likely to, you know, many of the
critical domestic programs that we have here, discretionary spending is
already at bare bones. It`s probably going to be cut even more.

SCHULTZ: OK.

STEIN: We`ll see if they do any Social Security changes. But, you
know, it`s very hard to make the budget balance in 10 years without massive
austerity measures. I don`t think those are going to go over popularly.

SCHULTZ: Well, if you close the loopholes and get some more revenue
out of the wealthiest Americans, it can happen. But I don`t think it`s
going to happen.

STEIN: I want to see what he does with the tax hikes that were part
of the fiscal cliff deal, if he keeps those or not. Yes.

SCHULTZ: OK. Sam Stein, Heather McGhee, great to have you on THE ED
SHOW. Thanks so much.

STEIN: Thanks, Ed.

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

Controversial Venezuelan leader Hugo Chavez has died at the age of 58
after a long battle with cancer. More on that.

Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Well, he`s got Romneyitis. Jeb Bush has done a complete 360
on his immigration policy. The big panel will try to nail him down later.

A fake Republican plays a major role in one of the biggest races of
2013. The very real Elizabeth Colbert Busch is here tonight.

You can listen to my radio show tomorrow, noon to 3:00, Channel 127,
Sirius XM Radio.

Share your thoughts with us on Facebook and on Twitter using #EdShow.

We are coming right back. Lots more coming up.

(COMMERCIAL BREAK)

SCHULTZ: And we are back.

He led Venezuela for 14 years and was a long-time vocal critic of the
United States government. Today, after a two-year battle with cancer, Hugo
Chavez is dead. He leaves behind a complicated legacy in Venezuela, and
his death could have substantial implications here at home.

The White House issued a statement earlier this evening. "At this
challenging time of President Hugo Chavez`s passing, the United States
reaffirms its support for the Venezuelan people and its interest in
developing a constructive relationship with the Venezuelan government."

Here is NBC`s Mark Potter with more.

(BEGIN VIDEOTAPE)

MARK POTTER, NBC NEWS CORRESPONDENT (voice-over): Hugo Chavez was
first elected Venezuela`s president in 1998 and became a polarizing figure
on the world stage. He was loved and hated at home, respected and
ridiculed abroad.

Born to a family of teachers in 1954, Chavez joined the Venezuelan
airplane, where he came to despise the ruling elite. In 1989, when a bad
economy led to riots and hundreds were killed, Chavez was appalled by
orders from then-President Carlos Andres Perez to shoot civilians.

In 1992, Chavez, now a lieutenant colonel, led 12,000 troops in a
failed coup against Perez. Chavez was jailed, but was pardoned two years
later, by then a hero to the left and the poor.

He was overwhelmingly reelected in 2006, but was hardly a democratic
ruler, using his power to silence opponents and journalists and to
nationalize private companies while championing the poor by building
schools and health clinics. But critics say his attempts to remake
Venezuela backfired.

JORGE CASTANEDA, NBC NEWS ANALYST: An enormous amount of money spent
uselessly, conflicts with the United States, limit takes to freedom of the
press, throwing opposition leaders in jail or throwing them out of the
country.

POTTER: He bonded with Cuba`s Fidel Castro who became his mentor, and
embraced Iran`s Mahmoud Ahmadinejad. He also supported several left-
leaning countries in Latin America, and taunted the U.S., even calling
then-President George W. Bush "the devil" at the United Nations.

Toward the end of his life, Chavez battled cancer and sought treatment
in Cuba. After an apparent recovery, Chavez was reelected last fall to his
fourth term in office, but shortly afterward was felled again by cancer.

Hugo Chavez, a man of extremes leaving a dramatic mark on Latin
America.

Mark Potter, NBC News, Miami.

(END VIDEOTAPE)

SCHULTZ: Joining us tonight, William Dobson, politics and foreign
affairs editor at "Slate" and author of "The Dictator`s Learning Curve."

Mr. Dobson, good to have you with us tonight. Venezuela is the fourth
largest foreign oil supplier to the United States. What does his death
mean for this country in terms of oil supplies in the market?

WILLIAM DOBSON, SLATE: Right. Well, I mean in terms of oil supply in
the market, I don`t think you`ll see a tremendous change right away. I
mean, the thing that everyone is going to be watching is what the political
situation is in Venezuela in the days to come, whether or not the situation
actually truly is unstable or not.

I think that for many cases, though, for the United States, it`s one
of the powers that actually stands to have the least change. I mean, as
it`s been for years, no matter what the rhetoric was that came out of
Caracas, the United States was Venezuela`s chief buyer of oil when
relations -- diplomatic relations would have appeared to be at their worse.

So I don`t think that will change in the near future. It`s not in
anyone`s interest.

SCHULTZ: Does his death complicate things for the Obama
administration, or does it just offer a big opportunity here?

DOBSON: It could offer an opportunity. I think really what has to
happen, what the Obama administration is going to be looking for is what
the Venezuelan people do. According to the constitution in Venezuela, they
are supposed to hold an election within the next 30 days. Most likely,
that will be between Chavez`s handpicked successor, Nicolas Maduro and the
leader of the opposition in the election against Chavez last October,
Henrique Capriles.

My guess is that Maduro, on the mixture of nostalgia and grief of
Chavez will probably do well in those election. But it`s difficult to say
if anyone can run the country the way that Chavez did. Chavismo was based
on Chavez, not anyone else.

SCHULTZ: And how pivotal is Venezuela`s stability in the region. I
mean, is there a chance that things could go South, or are they stable?

DOBSON: Well, actually, in truth, the country that will be affected
the most by this will be Cuba. Cuba saw in Venezuela its lifeline.
Venezuela replaced the Soviet Union as its sort of chief supporter, its
chief backer. So I think that right now probably this news, which we`ve
known is coming, is probably most upsetting for officials in Havana.

For others, like Russia, we`ll see. They`re losing potentially one of
their largest arms buyer, one of their largest arms buyer.

China will have concerns about its debt with Venezuela.

Iran loses a big diplomatic backer.

In the region, countries like Bolivia, Ecuador, Nicaragua lose their
most articulate and loudest spokesman, certainly.

So there will be effects, but I think that in a dramatic way, it will
be largest felt in Cuba, and then, of course, Venezuela itself.

SCHULTZ: William Dobson of "Slate", good to have you on THE ED SHOW -
- thanks for your insight tonight. I appreciate it.

If Congress gets its way, RG3 won`t be playing for the Washington
Redskins anymore. I`ll tell you why. That`s a good thing. That`s up
next.

America is used to the Bushes lying, but Jeb is setting a new low?
The panel dives in tonight.

Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JUDGE JUDITH BARTNOFF, D.C. SUPERIOR COURT: I can only imagine what
it would be like to be at a football game at FedEx Field in a crowd of
closer to 90,000 people, all screaming at the top of their lungs when what
they are screaming is a racial slur.

(END VIDEO CLIP)

SCHULTZ: Welcome back to THE ED SHOW.

A discussion held last month at the Smithsonian`s National Museum of
the American Indian in Washington certainly has intensified a debate that
is decades old. Should the Washington Redskins change their name?

In 2013, you would think it would be a slam-dunk decision. It`s
pretty obvious. A lot of people think it`s a very offensive term, and it
is. And a lot of people think it has to go.

But many of the people who defend the name don`t seem to understand
what the word truly means. Look it up in any dictionary. The term is
identified as offensive slang. As D.C. Delegate Eleanor Holmes Norton told
"The Hill", nobody would let a comparable name to blacks stand. She is so
right.

Norton and Congressman John Lewis, a civil rights hero, are urging the
team to officially change their name. And it`s not the only questionable
name in American sports. The Morning Star Institute estimates that there
are over 900 troublesome names and mascots that exist all across America?

So how have the Redskins responded to the recent criticism? The kids
are doing it.

An article on the Redskins Web site points out that teams at 70
different high schools are called the Redskins, which is just probably
another reason for the team to take the lead and change their name.

They are a professional football team, a franchise. Their games are
broadcast all across the country, depending on how good they are. And they
are the ones setting the example for those kids. It`s going to take
pressure from consumers. It`s going to take an act of Congress and the
courts. Blah, blah, blah, blah to change a name. Ain`t going to happen, I
don`t think.

Team owner Dan Snyder has made it clear he is not going to budge.
Snyder is worth an estimated $1 billion. He is not used to being told what
the heck to do with his franchise, his team or his business. He is more
interested in the money than getting with the times.

(BEGIN VIDEOTAPE)

JEB BUSH, FORMER FLORIDA GOVERNOR: The path to citizenship, which I
would support --

SCHULTZ (voice-over): Jeb Bush is all over the map on immigration
reform.

BUSH: We can`t continue to make illegal immigration an easier path
than legal immigration.

SCHULTZ: The big panel takes on his immigration spin cycle next.

I`ll bring you good news from Wall Street and bad news for Dennis
Rodman.

Plus, Batman is revealed.

STEPHEN COLBERT, HOST, "THE COLBERT REPORT": As a broadcast
journalist, I am obligated to maintain pure objectivity.

SCHULTZ: Politics turns into a family affair for Stephen Colbert.

COLBERT: It doesn`t matter that my sister is intelligent,
hardworking, compassionate and dedicated to the people of South Carolina.

SCHULTZ: We`re talking to Elizabeth Colbert-Busch about her run for a
South Carolina House seat.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW. Thanks for stay with us
tonight. Running for president can`t be easy. Everything you say and do
is under the microscope. Former governor Jeb Bush got a lesson, and he has
now done a complete 360 on immigration reform. In June, he was on record
supporting a path to citizenship.

(BEGIN VIDEO CLIP)

BUSH: You have to deal with this issue. You can`t ignore it. And so
either a path to citizenship, which I would support, and that does put me
probably out of the mainstream of most conservatives, or a path to
legalization, a path to residency of some kind.

(END VIDEO CLIP)

SCHULTZ: Yesterday, in anticipation of his book coming out, he
reversed himself.

(BEGIN VIDEO CLIP)

BUSH: If we want to create an immigration policy that is going to
work, we can`t continue to make illegal immigration an easier path than
legal immigration.

(END VIDEO CLIP)

SCHULTZ: In fact, Bush`s new book is very clear. He writes, "Those
who violated the law can remain but cannot obtain the cherished fruits of
citizenship." Today he is trying to explain away the book.

(BEGIN VIDEO CLIP)

BUSH: We wrote this book last year, not this year.

JOE SCARBOROUGH, MSNBC`S MORNING JOE: Right.

BUSH: And we proposed a path to legalization. So anybody that had
come illegally would have immediately a path to legalization.

(END VIDEO CLIP)

SCHULTZ: Well, let`s be very clear. In the book that Bush supported,
a path to legalization, not a path to citizenship. Today Bush threw his
support behind a path to citizenship.

(BEGIN VIDEO CLIP)

BUSH: So going forward -- we wrote this last year, going forward, if
there is a difference, if you can craft that in law where you can have a
path to citizenship where there isn`t an incentive for people to come
illegally, I`m for it. I don`t have a problem with that. I don`t see how
you do it, but I`m not smart enough to figure out every aspect of a really
complex law.

(END VIDEO CLIP)

SCHULTZ: A Bush admitting that he`s not smart. Interesting.

Where is Mitt Romney`s Etch-A-Sketch when you need it? Looks like Jeb
could definitely use it right now. Go figure.

Let`s turn to Annette Taddeo, chairman of the Miami-Dade Democratic
Party, and also the vice chair of the state party in Florida. Also with us
tonight, Georgetown University professor Michael Eric Dyson, and Frank
Sharry, director of immigration advocacy organization, America`s Voice.

Great to have all of you with us tonight. Now earlier today Harry
Reid got into the mix. The Senate majority leader said that Bush is not
evolving, he is dissolving on immigration.

Annette, would you care to explain Jeb Bush`s position after so many
Democrats in Florida thought that he was the one that they could count on
to get some reform on the Republican side?

ANNETTE TADDEO, MIAMI-DADE DEMOCRATIC PARTY CHAIR: It`s extremely
disappointing. Certainly as a Latina for Florida, we looked up to him as
the one Republican, one of the very few which we could count on our hand
that we could look up to, that would stand up to the Republicans and say
that we need a path to citizenship. And then he says this.

And now he is saying, well, it was last year, (speaking in foreign
language). That`s insane. I mean, you can`t say that he just wrote it on
the book last year. Last year we were in the middle of an election. And
he is saying exactly the same thing in this book as self-deportation. So
in essence he is saying I`m for self-deportation. I mean, that`s insane.
So he might as well be Romney.

SCHULTZ: Professor Dyson, what do you make of this shift? I mean, as
if the Republicans don`t have problems with their identity crisis and
demographics as it is now. This, oh, by the way, he wrote the book last
year.

MICHAEL ERIC DYSON, GEORGETOWN UNIVERSITY: Yes, well, you know, I`ve
written 18 books. And guess what? You write some stuff then, it comes
out, you talk about it. And if you changed your mind in that sort of
period, then you say so. But you try to explain it with logic and reason.
It seems here that the flip-flopping is incredible.

I hope it`s not a foretaste of glory divine, so to speak, on the
Republican run for presidency from Mr. Bush. But the reality is this. We
did believe that he was one of the few sane Republicans here. Did they not
learn their lesson? The last election proved that the Latinos swung
heavily behind President Obama because he had a sane, rational policy.

Despite some criticisms, they legitimately entertained at the
president. So the reality is that this Jeb Bush was a center for calm,
reasoned approaches to pathways to citizenship. How do we not punish
children of people who have come here through no fault of their own, those
children who are here through the Dream Act, to make them American
citizens, to allow them a pathway to citizenship that allows them to
contribute?

Because we know that all of the -- numbers have come out suggesting
that the so-called illegal immigrants contribute greatly to this economy to
begin with also.

SCHULTZ: And that is what surprises me so much. It`s not like this
is the first time he`s ever dealt with this issue, having been the governor
of Florida for eight years. He just seems incapable of articulating a very
solid position on what he believes and where he stands on this.

Now the chair of the Democratic Party in Florida called Bush`s
position cravenly -- cravenly political and said that really, his
credibility has vanished.

Frank, how does he get it back? I mean, how does he go to CPAC
without going even further to the right?

FRANK SHARRY, DIRECTOR, AMERICA`S VOICE: Yes, this is an incredible
unforced error. I mean, this guy should be coming to Washington this week
and taking a victory lap of being the Republican who is consistently had a
principled position for reform with a path to citizenship, but he comes, he
publishes this book, he moves to the right, probably in hopes of being more
acceptable to the CPAC crowd.

And he forfeits both his principled background and his position on
immigration. The Republican party is embracing a path to citizenship while
he shifts to the right, oh my god. This is going to hurt him both with
conservatives and with Hispanic voters.

SCHULTZ: Annette, what is the dynamic with Senator Marco Rubio on
this?

TADDEO: He was definitely trying to send a message to Senator Marco
Rubio that he is in the race. He is trying to send a message to the
donors. He`s in the race, he is going to run. However, this move is
surprising to all of us, and it seems like he is more interested in just
trying to appease to the Tea Party and to the -- to the base of the
Republican Party.

Unfortunately, that`s what it is now. And in just his political
agenda of becoming a president than in really doing what`s right for the
country and for state of Florida.

SCHULTZ: Professor, as if they haven`t learned anything from the last
candidate.

(LAUGHTER)

DYSON: Well, absolutely right. It`s a great miscalculation, because
here the flip-flopping doesn`t serve any interests that he wants to
entertain as a potential president. The reality is, as a presidential
candidate. So if you`re going to talk about, you know, strengthening your
presence among Latinos, which he got great credit for.

Not only existentially in person because he himself is married to a
Latino woman, but because he`s been broad in his understanding of the
necessity of forging a pathway to citizenship and making sane reasonable
policy in the midst of so much right-wing banter.

So I think that he`s surrendered, as Brother Frank said, he`s given up
the principle. He`s given up the -- you know, his ability to be -- to be
an arbiter for these issues, and ultimately what he has done is sacrificed
his ability to stand tall and to be distinguished among those Republicans.
Now he`s chasing the crowd --

SCHULTZ: Yes.

DYSON: -- when before he led them.

SCHULTZ: Frank, how does he rehabilitate himself from this, or has he
done it? Or maybe not --

SHARRY: Well, my prediction is by the end of the week he is going to
reassert his traditional position in favor of this. He is going to
probably find a way to bury the book. And he would be wise to do so.
Right now he is in a situation where Marco Rubio is out in front with
Hispanics when he should be out in front.

Again, he`s really blown it on this. I think he`s just going to have
to say mea culpa. I`ve always been for a path to citizenship. I still is
-- I still am.

SCHULTZ: Yes.

SHARRY: And suck it up.

SCHULTZ: Annette, who would the Hispanic vote go with right now?
Marco Rubio or Jeb Bush?

TADDEO: Well, based on his previous support of a path to citizenship,
it really would go with Jeb Bush. He has always been very popular in
Florida. You know, and, again, I`m a Democrat. So I would never vote for
him. But he has -- I have to admit, he has been popular in Florida. But
this is -- I believe this is a huge mistake. I believe this is a mistake
in the -- in the range of the 47 percent mistake that Romney made. I don`t
think he can take it back that easily. I think it`s going to stay around.

SCHULTZ: Michael Eric Dyson, Annette Taddeo, and also Frank Sharry,
great to have you on THE ED SHOW tonight. Appreciate your time.

Up next, good news and bad news with Batman, Dennis Rodman and Rupert
Murdoch. And later a Democrat has a chance to take a Tea Party seat away
from the Republicans deep down in South Carolina? It`s no joke. Stick
around.

(COMMERCIAL BREAK)

SCHULTZ: And of course we love hearing from our fans on Facebook and
Twitter. Many of you are responding to Paul Ryan`s push to abandon his
campaign pledge not to cut Medicare for Americans over 55 years old.

On Facebook, Michael Anderson writes, "Vote Republicans out of
Congress in 2014, problem solved." Kathy Sommer Schachter says, "Someone
should hand Paul Ryan a pink slip. He is a disgrace, no integrity, no
honesty." And Lindy Reid Blosser, "Wonders how many less votes Ryan would
have gotten if he had said this before the election."

Go to our Facebook page now. You can get in on the conversation and
like us. That would be liking THE ED SHOW. Would appreciate that when
you`re there.

We`ll be right back.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW. Good news/bad news. It`s all
out there.

Good news on Wall Street today. The Dow Jones Industrial Average
closed at a record high, making of course President Barack Obama the worst
socialist ever. The bad news, household income is at a 10-year low, just
as the effects of the sequester start to kick in.

This is the message you get when you call to schedule a tour at the
White House.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Due to staffing reduction resulting from
sequestration, we regret to inform you that White House tours will be
canceled effective Saturday, March 9th, 2013 until further notice.

(END VIDEO CLIP)

SCHULTZ: And Louie Gohmert put in an amendment today in the House
that President Obama shouldn`t be playing any more golf on company time as
long as those scheduled tours have been stopped.

More bad news for Dennis Rodman. Fresh off his photo-op with a brutal
dictator, the "New York Post" reports Rodman was booted from a New York
hotel yesterday for loudly telling anyone who would listen just how great
the North Korean dictator is. Apparently that behavior is good enough for
the Sunday shows. Not for a hotel bar.

News Corp., the parent company of FOX News, announced a start date for
their new sports channel? Yes. Bad news is that if they don`t like the
score or the outcome of the game, they could just change the final scores.

In superhero news, the trailer for "Ironman 3", well, it`s out. Good
news, Tony Stark is a job creator.

(BEGIN VIDEO CLIP)

ROBERT DOWNEY, JR., ACTOR, "IRONMAN 3": We do need backup.

DON CHEADLE, ACTOR, "IRONMAN 3": That`s your department.

DOWNEY: Here`s my boys.

(END VIDEO CLIP)

SCHULTZ: And finally, more good news about the real-life superhero
bagging crooks in England. Batman has been unmasked, and he is talking to
the press. The bad news is that you can barely understand what the heck he
says.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Well, I gone to Wembley to watch a final. Now
while I went at Wembley, I got the phone call off Daniel asking me if I`d
drained out my Playstation. So I told him, I told him he`d have to wait
until I come home. So after the game, I got home, roughly about 1:00.
Come home, got in my car, and taking down the Playstation. Obviously it
was done as a joke.

(END VIDEO CLIP)

SCHULTZ: Said something about 1:00. Whatever else he said, I`m sure
it was pretty good news.

Tonight in our survey I asked you, will Republicans ever stop trying
to destroy Medicare? Three percent of you say yes, 97 percent of you say
no.

Coming up, Elizabeth Colbert-Busch is on the path to become more
important than her famous brother. She`s next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

COLBERT: Holy cow, my sister is running for Congress.

(END VIDEO CLIP)

SCHULTZ: Well, we are covering a big race in tonight`s big finish.
Comedian Stephen Colbert could help his big sister upset the Republican
power structure in their home state of South Carolina. Colbert is actively
campaigning for Elizabeth Colbert-Busch for South Carolina`s only open
House seat. The siblings, brother and sister, well, they pronounce their
names differently, but they generally agree on politics.

(BEGIN VIDEO CLIP)

COLBERT: No free airtime, Lulu. As a broadcast journalist, I am
obligated to maintain pure objectivity. It doesn`t matter that my sister
is intelligent, hardworking, compassionate, and dedicated to the people of
South Carolina.

(END VIDEO CLIP)

SCHULTZ: And it might take some serious star power for a Democrat to
win the special election on May 7th. Twenty candidates are vying for the
seat left open by Tea Party favorite Tim Scott, who is now in the Senate
because Jim DeMint quit back in January.

Here are the facts. Republicans have control of South Carolina`s
District 1 House seat since 1980. The district boundaries were redrawn and
the counties are reliably Republican. The governor is Republican. Both
senators are Republicans, and five out of six sitting congressional members
are Republicans as well.

There are 16 Republicans on the ballot. Democrat Elizabeth Colbert-
Busch has only one primary opponent, and he has been campaigning for this
seat since, you got it, 1972. Now, among the Republicans, you got Ted
Turner`s conservative son Teddy, and of course the love gov, Mark Sanford.

Bottom line, Elizabeth Colbert-Busch could give the Democrats a chance
at winning this House seat for the first time in two decades. And she
joins us tonight here on THE ED SHOW.

Elizabeth Colbert-Busch, thank you for your time. Nice to meet you.
And I guess the first question is, how is it going?

(LAUGHTER)

ELIZABETH COLBERT BUSCH, (D-SC), CANDIDATE FOR CONGRESS: It`s going
very well. I`m just delighted to be with you. But it`s going very, very
well.

SCHULTZ: Well, you know, the district, 40 percent went for Obama.
Will your district, do you feel confident that they`ll elect a Democrat?

COLBERT-BUSCH: I feel very confident they`ll elect a Democrat. And
one of the reasons is a recent poll releases from the Winthrop poll I think
you`ll find fascinating is that 12 percent approval rating for the state of
South Carolina for the performance of our congressional leadership. And
just as you had just recently mentioned with the dominance of the
Republican Party in the state of South Carolina, I think that speaks for
itself with the polls.

What do you think?

SCHULTZ: Well, I think you got a shot at it because of your brother
and because you are smart as well. It`s always great to get that attention
to the campaign.

COLBERT-BUSCH: Thank you.

SCHULTZ: Has that helped you, obviously?

COLBERT-BUSCH: Oh, obviously, yes, absolutely. I`m just so proud of
my brother and so happy with the help he and all my brothers and sisters
are giving me. But now it`s time to get serious and talk about the issues
and get down to winning this district.

SCHULTZ: What are you going to have to do to attract disgruntled
Republicans? Even in the -- and I consider South Carolina the deep south.
There are some pretty strong Republican traditions in that state. And
you`re going to have to really appeal to the disgruntled Republicans to
make them think that you`re not some Democrat as President Obama said the
other day, with horns coming out of your head. You know?

(LAUGHTER)

And having a sense of humor doesn`t hurt.

COLBERT-BUSCH: No, it doesn`t.

SCHULTZ: What about getting those disgruntled Democrats -- or
disgruntled Republicans?

COLBERT-BUSCH: I think probably when we talk about the polls at 12
percent, that includes the entire state, which is heavily Republican.

SCHULTZ: Yes.

COLBERT-BUSCH: So I think those Republicans are speaking out loud as
well. And I think what we`ll do is with 26 years of business experience,
reaching across the aisles to Republicans and Democrats alike, working in
the maritime industry and academia and research and technology, creating
jobs, I think -- I think that speaks pretty loudly to how much I`m
concerned about the job creation in the district, the education in the
district, and how we can support and grow jobs here.

SCHULTZ: One local paper reported you`re pro-choice and you support
same-sex marriage. Has that hurt your campaign at all in South Carolina?

COLBERT-BUSCH: No. Actually, I don`t think it has at all. If you
would like me to address both of those --

SCHULTZ: Sure, go ahead.

COLBERT-BUSCH: I would be happy to. When we talk about choice, let`s
be very candid. Choice is a very difficult thing for a woman. It`s a very
personal issue for a woman. It`s a personal issue between herself, her
god, and her doctor. And we are -- they have the absolute right to choice.
And it is the law of the land. So that is where we are with that subject.

Now on the gay rights, here is how I feel about that. Ten years ago,
this was a huge issue, an absolutely huge issue. Ten years from now it
will not be a huge issue. It`s the -- it`s the fastest movement of a wave
of understanding, of pure rights and equal protection under the law. And
so --

SCHULTZ: Even in South Carolina you think there has been an attitude
change?

COLBERT-BUSCH: Well, there has definitely been an attitude change in
South Carolina. And we see it moving rapidly, as a matter of fact. Now
South Carolina is a state that does not -- does not allow same-sex
marriage. But we`ll see where that takes us in 10 years. There is a
definite movement, a definite change of attitude in South Carolina, yes.

SCHULTZ: OK. Let`s say you win the primary, and then it`s -- of
course, I would pick maybe Mark Sanford on the other side. I don`t know
what the polling is there, but it would certainly be great to see you
defeat him. Could you defeat him?

COLBERT-BUSCH: Well, Ed, let me be really clear about something
first. We have got to get through the first primary, March 19th. And I do
have -- I do have a competitor, as you mentioned. And so right now this
campaign is focused on getting through that primary, getting the vote out,
and winning the Democratic seat. And as you so aptly mentioned, there are
so many Republicans at this point that we have no idea who is going to
shake out. And until that shakes out, we`re going to keep our eye on the
prize.

SCHULTZ: All right. This is really the first election since all of
the mess in Washington, since we thought we had control of things.

Elizabeth Colbert-Busch, great to have you with us. Best of luck to
you. We`ll visit again. Thank you.

And that is THE ED SHOW. I`m Ed Schultz. "THE RACHEL MADDOW SHOW"
starts right now.

Good evening, Rachel.

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

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