a number of road blocks thanks to some on the left who attempted to derail the so-called compromise. illinois congressman told fox news, my brain is going to blow up after this he apparently was not alone. oregon representative who is behind much of the opposition of this bill joined the chorus as well. >> my brain is fried, sorry. >> sean: liberal democrats agree with the anointed one-on-one thing the fate of his presidency rests with this deal. last night defazio said the president is making calls saying this is the end of his presidency if he does not get this bad deal. this is potentially the end of possibility of him getting elected if he gets this deal. on one hand he is telling democrats his presidency rests on the -- aoelt -- either way mr. president, your future does not look bright in christmas season. joining me with analysis on where the president stands now is the rnc chairman, michael steele who just announced this week he will seek another term in that position. mr. chairman, appreciate you being here. >> good to be back. >> sean: wall street skwurpb says this is the worst congress in modern history. i'm not sure what to make of this omnibus in the senate. looks like this was good news this was the bill with 6,600 earmarks in it. >> eight billion dollars worth of earmarks. i want to send out a shout-out and applause and thanks to mitch mcconnell and leadership for drawing a bright line on the congress saying stop the spending. we don't need to do this now. the nation is tying to heal itself economically. let's keep these bush tax cuts in place. let's not see a massive inkeys in taxes on the american people, coupled with additional spending they can't afford in 2011. i applaud the senate leadership for drawing a bright line and standing firm. now we look to the house, on the tax bill to make sure that gets passed so there is not a massive tax increase on the american people. >> sean: do you think this is because in the senate that all the republicans then held firm? in other words the house passed the they will -- resolution. they will take this up in the next congress. you think democrats caved in on the earmarks? did they cave on pressure from the public or they didn't have the votes? >> i think it is a combination of all three. the reality is the 2010 elects married. people realize on the hill -- elections mattered. people realized on the hilt they could not go back and justify eight billion dollars worth of earmarks. i think reality set in hard that the majority leader harry reid recognized that he did not have the votes. those folks up in 2012 did not want in hanging over their heads, as they had to deal with other parts of the obama agenda that are still to come in 2011. i think that saner heads prevailed. senate majority leader recognized the moon north leader got it right and pulled the bill. >> sean: the house had to stop movement because they couldn't get through the rules committee on the tax cut bill. they are having trouble with that bill in is their congress. it is speaker pelosi, harry reid. what do you make what is happening? omnibus bill with earmarks. this tax cut bill with 200 billion dollars in new spending. they are trying to bring up start, don't ask, don't tell, the dream act. what do you make of this flurry of activity in the wanning days in this 111th congress. >> this is called the jamming in of the agenda before change of control begins next year. even in the senate where democrats will keep the majority we've seen a pick-up of senate republicans there. that independent hanses the ability of minority leader -- that enhances the ability of mcconnell to negotiate and navigate on behalf of common sense policies. i think they are trying to jam it in now. trying to whipsaw democrats who lost in november saying what do you have to lose, vote, get it out of the door, part of the legacy of obama, part of the liberal agenda. and they can't stomach it because the weight of it is too great for the american people. >> sean: i'm aggravated with six republicans in the senate that had an opportunity to support jim demint making these tax cuts permanent. i named them last night. we had nine republican senators allowed this -- what i think is a really bad start treaty debate to begin. it included lindsey graham and john mccain. are you concerned about some of those votes? >> i'm not concerned about those votes so much as i understand the dynamics what is going on on the economic front and national security front. i think the american people can appreciate this you are talking about start treaty or any other aspect of our economy there's got to be a balancing act. all the members who represent diverse states and have different interests they have to consider in coming to some agreement and arrangement to move forward. i think that's what are going to see a little more of. both for democrats and republicans, the dynamics have changed as a result of the november elections. i appreciate what are saying about how the votes were cast. there's a lot more behind that vote than the casting of it. i think those are the things we need to wait to hear from those senators and leadership as to what else is involved on both subjects. >> sean: i noticed mr. chairman you do have some opponents and pretty much you have had them since the beginning of your term. left leaning political stories have come out and some express concerns about the you raised or gaffes you may have made as chairman. you announced you are going to run for reelection. what do you say to those who have spoken out you? >> i say the job isn't done. we removed nancy pelosi from the chair. now we need to take the white house in 2012. i think that is important that the party continue its grass roots movement upward. in order other words from the bottom up making sure people are engaged. i don't believe in quitting the fight. we raised close to 190 million dollars since 2009. we put that money out into the streets of america in over 360 victory centers around the country that enabled us to contact 45 million voters. we saw 44 million go out and vote, republican this year. we are very excited about the progress that we've made. i'm so proud of our state party, chairman, national committee men and women around the country have done a nominal job. i want to be the leader that get us there. >> sean: this is the best midterm election in 70 years and there is still infighting perplexing. >> the focus is not on each other it is on the obama agenda for the next two years. we've already begun to seen the machinations they are willing to push and force through legislation. it will get worse next year even with the leadership in the senate. >> sean: are you concerned about the spending in the tax cut bill? in other words, the 200 billion dollars, extension of unemployment and this extra money? are you concerned about that aspect of the bill? >> absolutely. you cannot go forward necessarily and say we are going to keep these tax cuts in place and then have the democrats come behind you and whipsaw in more spending. the reality is, i think republican leadership has been consistent on this, whether in the senate or the house, whatever we do, we have to first make sure these tax cuts are locked in, permanent. so that the business class has a security, if you will, in knowing how we're going to move forward. then the nation can begin to address those issues that relate to spending, big it under control so you can revive the health of this nation and its economy. >> sean: mr. chairman good to see you. happy new year, merry christmas. plenty more hannity coming up. ♪ [ male announcer ] you know her. we know diamonds. together we'll make her holiday. that's why only zales is the diamond store. where you can get up to $1,000 off now through sunday. ♪ ♪ ♪ [ male announcer ] print from any mobile vice so your ideas can be there even when you're not. introducing the new web-connected printers with eprint from hp. >> sean: senate republicans were asking for more time to read the start treaty. vice president biden has this special christmas message. >> get out of the way. there's too much at stake for america's national security. don't tell me about christmas. >> sean: deck the halls with deja vu. who needs to read a bill before it is shoved through a before it is shoved through a week before christmas. ♪ for he's a jolly good fellow ♪ the meeting's tomorro in dals ♪ ♪ we need to finish tho projections ♪ ♪ then output the final presentations ♪ ♪ sally, i'm gonna need 40 copies, obviously collated ♪ wht's going on? 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>> i think there's little doubt that the majority leader of the united states senate would not have taken the action he just took if he didn't have 41 votes to stop this. i don't think there's any doubt about it. >> for economic conservatives a 19,024 page just died. and 6,000 earmarks will not move forward? >> yes and i feel bad about those earmarks because i had so much fun with them. >> sean: joining me reaction democratic governor from pennsylvania, governor ed rendell. welcome back. >> good evening sean. >> sean: i'm looking at this bill. first they should have passed these appropriations bills in the spring, in the summer, leading up to the election. they wait until the government is about to shutdown. they stick 6,600 pieces of pork legislation in this thing. how could they be this tone-deaf? >> sean, let me start out by agreeing with you, i know that will shock you. they should have gotten these things done earlier. part of the gridlock that grips the congress that has forced these things up the deadline. like the tax bill. we almost saw taxes group on americans because congress couldn't act earlier. they should get their work done on time. we should put aside all of this posturing. >> sean: maybe if the president would stop calling republicans hostages. maybe if he would stop referring to them as the enemy. maybe if he said they could sit in the back -- >> and sean i agree. i think on the tax bill, i think the president did lead. it was good for america, the results. wasn't perfect from anybody's standpoint but it got the job done. >> sean: we don't know yet. the bill hasn't passed in the house. >> the democrats and republicans both, through their amendments -- withdrew their amendments, so i think it is going to pass. the basic thing is we can fight the next election battle for the next two years if we do the country is going to hell in a hand basket. >> sean: it is already going to hell in a hand basket. >> we have to cooperate on something that will begin the job of cutting the deficit. >> sean: governor, i respect what you are saying. here's my take on president obama, i mean this, i'm being as respectful as i can. he's weak. he's allowing nancy pelosi and harry reid to set the agenda. he has from the beginning. he made all these promises about earmarks. he didn't stand up and say no, take those earmarks out. let's roll the tape first. >> our earmark system what is called pork barrel spending in washington is fraught with abuse. it badly needs reform. i pledge to slash:#okx earmarksy more than half when i'm president of the united states of america. i'm not going to tell you what i'm going to spend, i'm going to tell you what i will save. we will go through the federal budget page by page, line by line eliminate programs that don't work. senator mccain talks about earmarks. no doubt the system needs reform and things we spend money on that need to be eliminated. >> sean: first bill he signs 9,000 earmarks into law. he said he would eliminate ear marks. nancy pelosi, harry reid put it in there. he didn't have the courage to say i won't sign this bill! he seems to have no strength. he seems weak! >> sean, again, i think the president has proved that when he entered into a agreement with republican leadership on most important seminole issue facing the nation. i think he went against a lot of the wishes of democrats. he's been battered by the left. he did take a strong stand for what he believed is right for the country. >> sean: governor, i could show you dozens of more examples where he made that promise. is his word no good?skv is his word meaningless? >> have you had any indication he would have signed the bill with earmarks in it? been discussig earmarks since this omnibus has been put on the table. the white house through their spokesman yesterday came out and said we would rather they not be there, but this is what we have so we'll have to go along with it. >> well, again, i think for you to say that the president is weak, this is a times-ñ wheni think he's exercised his strongest leadership. he went a lot of -- >> sean: if i get caught in a lie i'm going straight to you. >> no, this is not a lie. a lot of his own party didn't want the tax cut bill to be passed. you know of that. >> sean: two separate issues. >> you're saying he doesn't lead and he sent strong. i think he knows he has to lead now. i think he's learned a lesson. in the end you and i both know the best politics is good government. if he can lead the country, reduce the deficit, get an energy bill, forget cap and trade, but an energy bill that creates american energy independence, good educational if he can do that he's going to get reelected. >> sean: in two years he's given us three trillion in debt, tripled the bush budget deficit and kept it there for two years, unemployment 10%. he's not doing a great job. >> unemployment dropped in pennsylvania today to 89.6% in pennsylvania. >> sean: i give you credit, not him. >> thanks sean. >> sean: coming up, a political unraveling for the democrats in this lame duck session. reaction former speaker of the house newt gingrich to all of tonight's events and what it means for the president's future. that and more, straight ahead. 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[ male announcer ] so don't blame it on aging. talk to your doctor and go to isitlowt.com to find out more. >> sean: my next guest was calling for the president to keep his word and refused to sign a pork filled bill. christmas has come early with news that harry reid pulled the omnibus bill rendering it dead. senator mccain reacted to the surprise move a short time ago. >> i appreciate the fact that the majority leader has agreed to a continuing resolution. have no doubt, as to why it happened. it happened because the majority leader didn't have the votes. >> sean: with reaction is fox news contributor, former speaker of the house co-author of valley form, newt gingrich is back with us. you can get an autographed copy which would make a great christmas gift newt.org. good to have you back. >> great to be back. >> sean: your reaction to the omnibus bill? >> at american solutions we sent out over a million e-mails today asking people to call their senators. we are thrilled. we think it is a great victory for the american people. i'm talking to you from south carolina where it is a get victory for jim demint who joined senator mccain leading the fight against these earmarks. good stuff in the right direction. next, the senate has to give up trying to pass the start treaty. which i think is a terrible idea for a lame duck session to try to ram through at the last minute. they ought to go home. the number within thing this lame duck session should do is go home. leave us alone. we don't want them around any more. the house ought to pass the tax continuation that passed the senate without any amendment. get it signed and go home. this has been bad government. to have a huge election and have democrats trying to ram things through as though the election never occurred. >> sean: do you have problems with the tax bill in terms of the spending? i was uncomfortable with 200 billion dollars in new spending. >> sure. i think the bill is the least bad option we have. i think to leave town without having extended the taxes would risk pushing us into an 11or12% unemployment. this bill is not a stimulus bill. all this bill does is continue the current tax code but avoids the disaster of having taxes group in january. and it avoids the disaster of businesses having no idea what the tax code is. what the republicans have to do is come back in january and launch a series of 9 to 12 bills each designed to increase jobs and economic growth. and recognize that all we did here was avoided a disastrous columns -- collapse of the economy we have nothing to get us back to job creation. it is clear the obama administration doesn't have a clue how you create jobs. john boehner and the house republicans need to lead the way in focusing on jobs and paychecks. >> sean: i won't pay attention you are back in south carolina tonight. you mentioned senator demint. he gave the senate republicans an opportunity to make the bush tax cuts permanent. six republicans voted against that. as it relates to advancing the discussions and debate in the senate and start treaty nine republicans made that possible. i agree they should go home. i would rather they would have fought harder not to have 200 billion dollars in spending. the start teeth is aed about deal and shouldn't be tan up by this -- the start treaty is a bad deal. and shouldn't be tan up. i'm not sure if they are going to support this, but -- >> my understanding that