'This Week' Transcript: Rahm Emanuel

MARTIN: We're not talking about policy, Greta. We're talking about the implementation of the policy.

WILL: Precisely. You're talking about the law as applied. And since it won't be applied until July 29th, I think that for reasons we've heard nothing but -- from the Justice Department about why they might challenge this is they don't know how to challenge it.

First of all, they have to wait until it's applied to come up with as applied violations. Or they can say, it is wrong for Arizona to asset concurrent jurisdiction in enforcing federal policy. And I think that's a very tough argument to make also.

HAASS: It has got to be federal at the end of the day, because you have to deal not simply with security and not simply with those who are here without documentation, but the biggest issue, I actually think with this country with immigration is legal immigration.

This is one of the keys to opening up the U.S. economy to making us competitive again. And unless this is dealt with comprehensively from the federal level, we will never have an adequate immigration policy.

VAN SUSTEREN: But nobody will do that because there are businesses on the right who like the cheap labor. And so they'll fight against it. And that's a special interest. And then you have the special interests on the left that thinks this is potential voters. Nobody will do anything about this.

We've been hearing about this since 1986.

HAASS: We disagree then. There are a tremendous number of businesses need a larger number of talented people, foreigners who come here, they get their Ph.D.s. We've got to find ways to keep them in the United States. This is one of the ways we're going to make this country economically competitive.

VAN SUSTEREN: I'm going to agree with you that we do need something. I don't disagree with you on that. I'm just saying that I don't see the appetite for it up on Capitol Hill.

TAPPER: One of the other issues with the economy right now has to do with the 1.2 million Americans who are about to lose their unemployment benefits. And there has been a big debate on Capitol Hill about whether it has to do with unemployment extension or the $50 billion in funds for states and locals, emergency fund, the president calls them.

There has not been an appetite to pay for them with spending cuts elsewhere. Here is Republican, Oklahoma Senator Tom Coburn talking about this debate.

(BEGIN VIDEO CLIP)

SEN. TOM COBURN (R), OKLAHOMA: What the American people want us to do is if we need to do these things, find something somewhere within the federal government that doesn't make sense. Don't borrow it from our children.

(END VIDEO CLIP)

TAPPER: Richard, what is going on here in terms of the debate on Capitol Hill?

HAASS: You're actually seeing one of those interesting moments in American politics where I think we're seeing a fundamental philosophical debate about the role of government in the economy. On one side are those who want to have a larger government role, talk about a second stimulus package, extending unemployment benefits indefinitely.

And there are others who want to bring down the deficit and basically say the role of government is to create an environment in which the economy can do well. Have an open trade policy, have a more open immigration policy. Don't over-regulate. Don't over-tax. Be predictable so businesses can prosper.

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