governors whose states have been hit hard. and also, a talk with john hickenlooper about the wildfires in colorado. this is state of the union and i'm candy crowley. white a fight in the white house. a major victory in the supreme court followed by a victory of a different sort on the house floor. the president used the trappings of this case in the formality of the east room to suggest in history and words that the supreme court settled the controversy over his health care law. >> today was a victory for people all over this country. >> as the president tried to close the books on the health care debate, his republican rival was writing the next chapter. >> obama care was bad policy yesterday. it is bad policy dye. -- it is bad policy today. while trying to wring the politics out of it, they were equally trying to put the politics into the botched gun running sting. the republican-led house cited attorney general eric holder in contempt of congress for failing to share documents. >> today make good political theater in some people's minds, but it is a crass disservice to the american people. >> joining me now is white house chief of staff jack lew. thank you for joining us. i waned to talk about health care a little bit because i wanted to show you a opinion poll taken by "usa today"/gallup, and this is the opinion of the supreme court's ruling that the individual mandate, and most of the entire law is constitutional, and 46% of americans agree with that and 46% of americans disagree with that. why does health care law remain so divisive at this point? >> cancandy, one of the great things about this country is that we have a supreme court and when it rules, we have a final judgment. so there is not a question as to whether or not the law is constitutional, because it is a constitutional and health care has been a divisive issue for several years. it does impact people's lives and the political debate makes it more and less divisive and people are seeing the things day to day that makes a difference. if you have a student who graduates from college and they don't have a job, they are able to stay on the family health plan. if you are on medicare and you used to spend $600 in the doughnut hole on prescription drugs, you are now covered. if you had a child with a pre-existing condition, you are not -- >> nose a-- those are the good and the president talks about those and those are wildly popular with the americans and what the supreme court has called the tax part and oher this things that i wanted to ask you about the whole idea of the panel tis if you want to call them and the supreme court calls them taxes, whatever, if you do not have health insurance by 2014, the fine for not doing them, and this goes through the irs is $285 or 1% of the income, and 2015 up to almost $1,000 or 2% of the income and 2016, it goes up as well. if part of your health care law is that insurers cannot deny you insurance on the basis of pre-existing conditions, why would someone pay for health care insurance if when they get sick they can still go buy it? why wouldn't they just pay the fines which are pretty low, rather than pay health care which is like $7,000 or $8,000 a year? >> well, let's just be clear. most americans want health insurance. >> i agree with you. >> most americans have health insurance and they will have health insurance and keep it and those who cannot will get tax subsidies and -- >> well, let me just stop -- >> and let me just answer the question, candy. the group that you are talking about, we have a understanding of the size of the group. in massachusetts where there was a plan like this 1% of the population fell into that group. and the congressional budget office when it looked at health care estimated roughly 1%. and be clear who we are talking about. people who can afford insurance, and decide not to have it. when they get sick and go to the hospital and the doctor and they are sharing their costs with everyone else. this penalty is a way of si saying, you have to pay your own way and pay your fair share. >> right. my point being, why wouldn't they go on to pay the penalty, since it is relatively cheap, and this is not a huge penalty and then when they get sick go get health insurance? >> well, we have experience in massachusetts that shows us that people want health insurance if they can afford it and the fact that 1% pays the penalty in massachusetts tells you a great deal. this is a plan that governor romney supported. it is something that i would think that he would have been proud of and it is a model at the federal level and the congressional budget office said would have an impact and it is time to get over the debate and implement the law. what the american people don't want is to be taken back to the divisive debate. they want us to get on and focus on the economic growth and creating jobs. that is what we want to do and that what we think that congress ought to do. >> except they do still kind of remain divided about this health care law and it has hit the campaign trail. i realize that you all don't want that discussion, but the republicans are going to foment that, and one of the ways they will do it is to say, listen, this is a tax hike. the supreme court has said so. do you all embrace the word "tax" as the supreme court did to rule this constitutional? >> well, the law is clear. it is called a penalty. and second of all what the supreme court ruled is that this law is constitutional. and it is time to move on -- >> under the tax act. >> well, they didn't call it a tax. it was using a power dunder the constitution that permits i. it was not labeled. it is a penalty and something that only 1% of the people who could afford insurance who choose not to get it will pay. everyone who wants insurance and chooses to get it will not pay it. they will get lower premiums and good health care and that a good thing for the american people. >> let me move on you on to a different question, within hours of the victory, the house voted to cite attorney general eric holder in contempt of congress for not turning over some of the documents. he has turned over a great many of the documents, but some of the documents that congress was asking in connection of fast and furious, a gun running scheme that went awry. now, you all claimed executive privilege for eric holder, and saying that the documents that he is handing over are covered by executive privilege, and he does not have the turn them over. this is from an interview with president obama in 2007 with our own larry king and he was talking about george bush invoking executive privilege when it came to his one of his layers and another staff member in an investigation that congress was doing. here is what the president, then a senator, had to say. >> there is a tendency on the part of the administration to try to hide behind executive privilege every time there is something little shaky taking plac place. >> so why did you all invoke executive privilege when some feel there is something shaky taking place? >> well, candy, back to the facts. the fact is that this is a bad plan the fast and furious and it is something that started in the bush administration and the attorney general did not know about it. it came out of the region and when the attorney general learned of it, he said we are going to stop it and not do it. there was a period of time when the attorney general did not know it, because it was happening at a regional office that a statement was made to congress that had to be corrected and every document e related to the decision up to that point has been shared. this is not a question of finding facts, but a question that since the beginning congress said they will find their investigatory power es in a political way. and this is political. >> is there not something oso important about the papers that you had to invoke executive privilege from a president who previo previously said, what is the point here? >> candy, this administration has been the most transparent ever. taxpayers can go on line to find out more about the way their government works than ever before. every president from george washington forward has used executive privilege, and the opinions relied on go back to the ray jeagan ed administratio >> why not turn them over? >> because this is a review of policy and turning it into a political witch hunt. they are looking for documents that have nothing to do with what they are asking questions about. there has to be an ability for a president to get advice and there are constitutional issues that this congress should pay more attention to, because they are hurting the very institutions. >> were there things in the documents that involved consultation with the president? is that why you invoked presidential h prprivilege? >> candy, i won't speak to the documents, because there was cooperation of the documents made up to the correction that congress was given about the policy, itself, and the testimony. what they are looking for now are internal documents that they know are not appropriate. >> let me turn you to the subject of the economy where we think that the election will turn one way or another. what do you expect that the white house, the unemployment rate will be in november at the time of the election? >> candy, i don't predict unemployment month to month, but when we took office three years ago we were losing jobs at 700,000 a month, and we have added jobs and the economy is moving in the right direction and not fast enough. we say that everyday the economy needs to gain strength and we need to create more jobs, but what we need to do is to shift the attention from the divisive political fights to do what we need to do to create jobs. the president has given congress many ideas of putting policemen and firemen and teachers back to work and helping people refinance who are underwater on their homes, and if congress would pass some of the proposals that the president has submitted there would be a million more jobs. that is what they need to do. >> if you can predict a million more jobs if the president had passed that, you can't take a stab of what the unemployment rate will be in november? 8% or 9%? >> well, we have a arc and the steadily gaining. we made the right decisions 3 1/2 years ago and we have stayed ob tn the path, and there is mo to do. the american people are working from now to november, and we are going to be working from now until november, and so does congress. >> there is a pakistani doctor who helped the cia in locating osama bin laden and he has been found guilty of treason in a court in pakistan and now in jail serving 33 years and given his role in finding osama bin laden s the u.s. doing anything to help him get out of jail this is. >> i can't speak to the specific details, but this is a case where the rule of law should govern, and justice should be done for the individual. i think that i shouldn't say more than that. >> does the u.s. think that he should be freed? >> well, the charges that we have seen do not seem to have any merit. >> thank you so much, jack lew, white house chief of staff. appreciate your time this morning. jobs down and home prices up, and unemployment flatlining. 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the former ceo of hewlett-packard carly fiorina and governor jennifer granholm are next. new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. we charge everything else... maybe it's time to recharge the human battery. only the beautyrest recharge sleep system combines the comfort of aircool memory foam layered on top of beautyrest pocketed coils to promote proper sleeping posture all night long. the revolutionary recharge sleep system from beautyrest... it's you, fully charged. get a free set of sheets when you buy a select beautyrest mattress. hurry, offer ends soon. one is for a clean, wedomestic energy future that puts us in control. our abundant natural gas is already saving us money, producing cleaner electricity, putting us to work here in america and supporting wind and solar. though all energy development comes with some risk, we're committed to safely and responsibly producing natural gas. it's not a dream. america's natural gas... putting us in control of our energy future, now. i am joined by former hewlett-packard president carly fiorina, and former michigan democratic governor jennifer granholmp who is the host of current tv show "the war room." it is great to have both of you here. let's talk about the recovery, because it is hard to read the tea leaves and the most important tea leaf is consumer confidence, because it leads things that are often not in the numbers and what do you think about it? >> well, it is a mixed bag. the numbers are encouraging and the jobless rates continue to decline and the whole 4.3 million jobs that the president has created has an impact, but it is not where everybody wants it to be. i do think that the campaign, itself, is going to be now after this health care decision, focused on the economy. i do believe that the health care decision puts that issue off to the side. now we get to see what the plans are for spurring economic growth, and you know, honest ly i think that if you look at the two candidates, you have to give the edge to the president. >> the republicans are not going to puts a side the health care, and i want to get to that, but let me take advantage of your background in business here, and an estimated $2 trillion sitting around in corporationsp they are doing pretty darn well, and they are not hiring. >> yes. well, fir, i think thst, as i h other programs, the second half will be tougher than the first, because we are not just a economy trying to recover from the financial crisis, and we now have structural crisis. we have fewer smaller businesses and more failing and fewer starting than at any time in the last 40 years and that is important because small businesses create jobs. big businesses like small businesses are struggling with massive uncertainty and tax code that is neither competitive and is overly complex, and a regulatory structure that is almost impossible to understand now, and yes, obama care is yet another -- >> uncertainty. >> -- blanket of uncertainty. >> and this is part of the republican mantra that big business does not know where the tax reform is going, and they don't know how much new regulation is going to cost them and what kind of infrastructure they will put in their own and they are sitting on all of the money and not hiring and si a self-perpetuating thing where the job rate stays where it is because the big companies are afraid to spend the money they clearly have. i want to play for you, because i want to get into the health care. this is from congressman gingrey and came right after the supreme court upheld health care. >> i have a smile on my face, because i believe this is going to elect mitt romney the 44th president of the united states. >> this being the constitutio l constitutionality of the health care. >> and good luck to mitt romney, because good luck taking away the ability of people having access to health care with pre-existing conditions and taking away health care for people's kids who have it. and taking that away is not a good campaign strategy and quick kwly to get back on the small business thing, it is baloney to say that small businesses are worried about obama care, when they are exempt from it. >> those with 50 or under. >> yes, that is 96% of small businesses, so that talking point is just baloney. >> well, sadly, it is not a talking point and that is why the national federation of independent businesses joined many attorneys general in filing suit against this law and why you saw on friday virtually every business commentator saying this is bad for small business. >> well, it is not bad for small business. >> believe it or not, most small businesses want to be big businesses and that i want to grow and succeed and hire. >> and i have seen that if you have 51 employees and you can get along with 49, wouldn't you do that to stay out of the requirement? >> of course. >> but the obama care provides tax credits for small businesses who choose to opt in to make it mo more affordable -- >> what i find so amazing about this is that health care has never been a -- >> republicans have been. >> well, they will make it, because the polling you showed indicates that there is a huge amount of division in the country about whether this is a good idea. what is interesting is that there has never been any disa disagreement about the goal. the goal is to provide quality health care about the american people, and at least half of the american people deeply fear that a 2700 page bill written by a bunch of folks on capitol hill who are not experts and now trying to manage from washington, d.c. and not from the states, 18% of the economy is going to be a big problem. >> they did something, and we all know -- >> they did something. >> and we know that the consequences lead to all sorts of thingsthings, and you can go and say they have done things on long-term care in particular, but isn'tb there something that jennifer has pointed out that we are going to see after the july 4th recess the republican-led house of representatives get on the floor to undo obama care. won't go anywhere, because the senate won't follow them, but undo the obama care vote by vote by vote, so you will have as i understand it, republicans on record saying, let's get rid of a requirement that insurance companies must provide insurance to people with preconditions? doesn't that bother you pl politically saying, how do i explain this? >> well, it also bothers me that we have a president who refuses to stand up and defend on its merits the largest new entitlement and tax increase in a long time. >> he has not campaigned on it, she is right. >> he won't, because he knows it is a loser argum