we've been holding in some cases for more than a decade now, in a tribunal system we invented just for this purpose, but also for what it says about the dilemmas that we are putting the lawiers through. the lawyers we have tasked as a country representing these defendants. amazing story and amazing sacrifice. now it's time for "the last word with lawrence o'donnell." good evening, lawrence. >> you know how last night i promised not to use the phrase, best thing in the world. when you finish, you're out of the building quickly, you don't watch the show, right? >> cone of silence. i just hop into the cone of silence and ride it home. >> good to know. thanks a lot, rachel. >> good night. >> so how serious is the tea party talk about creating a

third party? >> it's a loss for the tea party. >> the republican gets challenged by the tea party. >> thad cochran pulled off a win in mississippi. >> cochran tried to move to the middle. >> they focused on the money he had brought home. >> is this a strategy other m republicans will use? >> what is the use? >> what have you done for me lately? >> do i want a republican who has a history of bringing resources to the state? >> if you want a republican who may not bring in federal funds. >> promising bigger government, which is requiring higher taxes. >> a lot of frustration. >> could you see a breakoff from

the party? >> the civil war and the republican party. >> that's where the party is today. >> maybe that's what the tea party should have done is start a third party from day one. >> remember ross perot? he drove republicans crazy, because his third party campaign in 1992 allowed bill clinton to take the presidency away from republicans by winning only 43% of the vote. now the tea party, which has been nurtured by the republican party for the last few years, is grumbling about splitting off into a third party after a devastating loss for them last night in mississippi, where the tea party candidate challenged the senior republican senator thad cochran in the gop primary. and no one is more angry about what happened to chris mcdaniel than chris mcdaniel. >> there is something a bit

strange. there is something a bit unusual about a republican primary that's decided by liberal democrats. i guess they can take some consolation in the fact that they did something tonight, by once again compromising. by once again reaching across the aisle. by once again abandoning the conservative movement. >> one translation of that is, there is something strange about an american election that's decided by american voters. senator thad cochran won with almost 51% of the vote. cochran's margin of victory over mcdaniel was more than 6,000 votes. some of those votes came from african-american democrats wooed by thad cochran's campaign, and the republican party, which has spent $23 million this election cycle defending republicans from within their party, from tea party challengers like mcdaniel. mcdaniel was backed by freedom

works, one of the largest tea party groups. and today, the president of freedom works released a statement. it's disgraceful that self-described gop leaders like mitch mcconnell, john mccain, the chamber of commerce and the nrsc would champion a campaign platform of pork barrel spending and insider deal making while recruiting democrats to show up at the polls. if the only way the k street wing of the gop establishment is win is by courting democrats to vote in gop primaries, then we've already won. the associated press had not even declared mcdaniel a loser before sarah palin said this last night. >> you had considered moving third party. explain. >> well, if republicans are going to act like democrats, then what's the use in getting all gung ho about getting more republicans in there?

we need people who understand the beauty of the value of allowing the free market to thrive. so yeah, if republicans aren't going to stand strong on the points of their platform, it does no good to get enthused about them. >> tea party activists are the rhinos of republican party campaigning on making the senate conservative, use liberal democrats to preserve and incumbent mrepublican and defea a conservative. and rush limbaugh, who encouraged republicans to cross over and vote in democratic primaries in the presidential primaries of 2008 had this to say. >> they make a play at party

unity. but it's as you say, it's a one-way street. and it's -- they will not in any way, shape, manner or form support a tea party idea or candidate. but they want the tea party to think so. this is the great trick they're trying to perpetrate here. >> joining me now is republican strategist and msnbc analyst steve schmidt and michael tomasky of the daily beast. steve, the list of dmcommentato talking about this is an unimpressive list. they are not the kind of people that make things happen in american politics. what is your take about where we are now with the tea party versus the republican party? >> a couple things, lawrence. this group of people, for the

most part, wouldn't be able to successfully organize a three-car motorcade, let alone a new political party with ballot access. that being said, they're responsible for republicans giving up six u.s. senate seats over the last two election cycles. the reality is, if the sarah palin wing of the party did split off, it would be -- it would put back into play many categories of voters that republicans used to compete strongly with but haven't done well with in recent years. >> mike, do you see that as possible, that if there was a tea party smplit and they got a candidate for president that that would free up the republican from trying to appeal to that side? >> yes, it would. but still, it would elect a democrat.

there's just no way -- >> because the math just wouldn't work. if the republican tried to reach over, it seems to me throughout the campaign the republican would be thinking wait, if i just got a few of those tea party people. >> exactly. there's no other way that the math works. it's like when people used to talk about mike bloomberg as an independent presidential candidate. if he got in, the only thing he would have accomplished is to have elected a republican. but lawrence, if you look at the slate of candidates for 2016, presidential candidates, some of the tea party people are looking pretty good. rand paul is the guy we call the front-runner. so the tea party wing of the movement can lose a couple more of these primaries, and those are going to be interesting coming up, but the tea party wing is still in a position, if

you ask me, to nominate the standard bearer in 2016. >> steve, in rand paul's case, it's kind of interesting. it seems to me that he's gained credibility by the carefully selected steps he has made away from tea party rhetoric, by just acknowledging the fact that -- basic facts of government like yes, we are going to raise the debt ceiling. >> i think rand paul -- i don't think he's someone now as some of the other individuals you just mentioned is hook, line, and sinker a tea party member. he's a very serious candidate for the republican nomination. to the point that michael made about the math not working, i would like to point out the math doesn't work now for

republicans. if y there are 242 electoral votes with 270 needed to win, and without exception, every single democrat in this group that's growing, democrats are gaining market share. every demographic group that's shrinking, muns are gaining market share. republicans have to be able to change the electoral calculus by being able to win back some of these growing constituencies in the country that we use told compete with that, on a whole series offish shoes, whether it's immigration for hispanics, spills over to asians, a bunch of issues that have disqualified republicans have consideration in the eyes of single women, there are many issues that would come off the table that would allow a republican party to put itself forward as a limited government, fiscally conservative, socially tolerant organization that is attractive to a lot of 21st century voters in a way it hasn't been in

recent years. >> let's listen to something sean hannity said today on the radio. >> anybody that threw in with thad cochran, the rhino, i have no respect for. if you guys don't understand that conservatives are a big part of this base, and to fall into this power trip to hang onto power with your fingernails and use democrats in a republican primary and use democratic tactics, which is even worse, and to literally encourage people to break into this -- to join into this primary scheme is so despicable, i could not -- i can't -- i would not support this man after these tactics were used. >> mike, that provokes a lot of questions. the first one i had is when did thad cochran stop being a conservative? >> seriously.

i was thinking today that this is somewhat analogous to the lieberman situation in 2006, when martin won the democratic primary in connecticut and lieberman continued to run as an independent. however, here's where that analogy breaks down. joe lieberman was, by 2006, an apostate within the democratic party over his incredibly enthusiastic support for the iraq war and i think he appeared in the 2004 republican convention. you know, cochran is in no way, shape, or form that kind of a figure within the republican party. to hear them talk about him like this is preposterous. >> the difference being, a bunch of liberals preferred lamont, but they didn't sound like this after the results came in.

steve, that kind of bitterness, i didn't hear any of it privately or publicly after the election. i think there might have been real disappointment in wishing lamont were the senator, but it wasn't like this. >> look, there's two types of churches. there's the type that goes out there and tries to get converts in the church's door and the type of church that hunts heretics. and the republican party, particularly this wing of the republican party, is in the heretic hunting business. by no rational process do you get to a place where thad cochran is anything but a conservative. and so though it really is silly talk, and it's destructive for the ability of the party to be in a majority mace in the country. >> steve and mike, thank you both for joining me tonight. >> thanks a lot. coming up, a unanimous decision from the united states supreme court about your privacy, the privacy of your cell phone. very, very important decision for everyone.

also coming up in the rewrite tonight, jon stewart got into the irs scandal last night. he did a great job, a funny job. and he left out a couple of things, just like all the rest of the media does, and we're going to add those things when we come back. [ laughter ] smoke? nah, i'm good. [ male announcer ] celebrate every win with nicoderm cq, the unique patch with time release smartcontrol technology that helps prevent the urge to smoke all day long. help prevent your cravings with nicoderm cq.

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as everyone knows by now, this thing, your cell phone, is spying on you all day long, getting incredibly valuable information about you, and you didn't need edward snowden to tell you that. but the supreme court now understands that. they understand the importance of the cell phone in any kind of a criminal investigation. so they have given the cell phone particular constitutional protections. very important united states supreme court unanimous decision today, and my personal supreme court expert is going to -- hey,

is ari wired in the new york studios? is he ready to go? >> i'm here. >> i'm not going to just talk about you being here. ari, before you get up here next, i really have to just stop and thank you for your 2 1/2 months there in new york, in the anchor chair of "the last word" doing a fabulous job that you did. the other side of the country in l.a., if i was there, we would be -- >> can i give you a hug? you're welcome. and thank you, lawrence. it's been a real fun ride. i know it's exciting for a lot of people to have you back here. >> you're up next on the supreme court. ♪

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now, according to "the new york times," you don't have to be famous to have a biographer. according to "the times," we all have now, their phrase, a virtual biographer of our daily activities, and that biographer knows more about us than our best friends do. that biographer knows where we are every minute of the day. that biographer is the most effective spy and surveillance tool ever invented and we pay it to spy on us. >> who was that guy? just file that under any excuse to use old video of the show, because it saves us from typing up that same script again. the chief justice of the supreme court is oddly the youngest man on the supreme court, and he's

plenty young enough to have written a very knowing opinion about cell phone technology. the court released that opinion today and it says police cannot search and seize your cell phone without a warrant. joining me now to discuss this opinion, my personal supreme court expert, ari. it seemed to be the logical extension of what has always been involved on the telephone side of the police ability to get telephone information. before there were cell phones, they had to get a warrant in order to get your telephone records and to to any kind of a tap. >> i think that's true when you talk about doctrine or the logic here. what the court said today in this unanimous opinion is not

only is your phone special and protected under the fourth amendment, but they went further and said if anything, when you look at the way people live their lives today, what is in the phone in terms of personal data, personal information, personal communication, web searches that may reflect your plans, your state of mind, your privacy, all of that is more important to people than what's in their home or office. the court basically, as you mentioned, roberts being the younger one, the court acknowledging that in a way that could have profound repercussions, because so many police departments argued the opposite, that they should be able to go into people's phones without a warrant. >> that exists now, doesn't it? if the police say they pull you over, if you're leaving the scene of a crime or speeding and they look in your car, if they see something on the front seat of the car, it's something they can see, they are allowed to

seize that and examine that. >> that's right. if it's a real emergency, the court said that still applies. so if you say let's say they thought there was a missing bomb and they thought you were texting about the whereabouts, they would still have that emergency exception. what they don't have and what this opinion really put a stop to was trying to turn that loophole into a broad policy of taking anyone's phone during an arrest and saying oh, we get to search that incident to arrest almost automatically. again, you think that through and you say wait, maybe you did something wrong. no, you're not guilty of anything. you haven't seen a lawyer yet. the idea that on first impact with any police officer they should get to go through everything is actually a very invasive policy that a lot of departments were trying to use. >> and it seems to me the modern phone would require you in effect to testify against yourself because you can't get

into my phone to get anything without me telling you what that code is to get into that phone. >> right. that code and the why would of basically rummaging through it is asking you to incriminate yourself. the other interesting part is, although roberts didn't say it directly, you can't look at this opinion today without seeing it has a fundamentally liberal premise in its approach. because there weren't phones or anything imaginable like that when the fourth amendment was drafted. all this talk about pure originalism, you can't really be serious about that and apply things in a modern way. this was the right decision. it went further than some of us expected and a rare note of unity on the court. >> scalia went with the founder's original intent on cellular technology. ari, thank you very much for joining me tonight and for the last couple of month lgs. >> thank you very much, lawrence. coming up, bill and hillary

clinton and their money. some people think they have too much of that. and later, an exclusive update on that police chief who believes she was fired for being day. she's going to join us. ge where you've learned a thing or two. this is the age of knowing what you're made of. so why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain... it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to you doctor. thank ythank you for defendiyour sacrifice.

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i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. do you understand some people have been critical of mrs. clinton, secretary clinton, who initially had to explain talking about being dead broke coming out of the white house, or it was said in an interview --

>> i might understand it differently than you do. [ laughter ] >> the clinton campaign, which as you know on this program, is officially under way, and has been for a long time. has money troubles. too much money. here's more of how bill clinton handled the issue with david gregory. >> it is factually true that we were several million dollars in debt. >> when you say you pay ordinary taxes, unlike other people who are really well off who pay taxes maybe just off capital gains, can you understand as a political matter that can strike people as being out of touch? >> yeah, but she's not out of touch, and she will advocated and worked as a senator things that were good for ordinary people. all her life, people asking the

questions should put this into context. >> lea, as far as i can tell, i personally am not aware of any interest in how the clintons have earned their money outside of the media's interest. this is that stage of a presidential campaign which i say is already under way, in which because the voters aren't close to thinking or speaking about it, the media then speaks for the votes and says, what about all that money you have? >> i think that's right. there was all this concern about ho how he made his money. i think in some ways that's good for her, because if she in fact

decides to run, she's going to dust the cobwebs off. she's rusty, we know that very much. so this is sort of a mini campaign. she can know what the press is going to be throwing at her and get her answers ready. i think so far they haven't been great at answering these questions, but they have a long way to go. >> bill clinton saying they're broke, of course, to americans, but he had a job that paid $400,000 a year, he had no housing cost. what he had was a stack of legal bills from law firms who absolutely were never going to do a single thing to collect if it wasn't easy for the clintons to pay. so it wasn't anything like the debt americans live with. but ezra, it seems to me the issue has nothing to do with how much money do they have. if there's a political issue for someone to play with this, how

did you earn your money? we saw democrats and newt gingrich and others talk about mitt romney earning his money in ways that hurt other people, cutting jobs in different companies they would take over. the way the clintons have earned their money has been in lecture fees and people don't know where those speaking fees have been coming from. >> i think that's right. one, to go to how broke they were or weren't. you can't go that broke that many millions of dollars into debt unless you're pretty rich. people don't give you millions in legal services if they don't believe you can pay it back. so that was an odd statement for them to make. that was an out of touch statement. but to your point, i think there are two pieces of the clintons finances that will be fascinating if they get unwound. one is who they have both been speaking to. they are obviously political

animals, so most of the folks they're dealing with i'm sure they vetted with. it's the aluminum manufacturers of ohio, things like that. but the other people of it, and i don't think this is not how they make their money, but it's important, is the clinton global initiative, which has raised tremendous quantities of money. and it's raised it from very, very rich people and it's entirely possible between now and the 2016 campaign some of the folks that bill clinton got huge donations from, they will do things that even though their money was going towards a good cause, it's not somebody folks are comfortable having alined to the first president. >> and of course, the response there will be look what good the global initiative does.

look what the money was used for. and it's easy to play out how this dialogue would go in a political theater. normally you would say were it not for the last republican presidential primary, republicans aren't the ones that are going to come attack you. but look what newt gingrich did with it against mitt romney. >> i think the real parallel we might see in 2016 is the sort of framing of john kerry in 2004, who i think was worth something like $2 h00 million, but the wa they framed him is he was a culturally elitist and out of touch, right in and you even sought george h.w. bush try that same rhetoric with dukakis. he talked about liberals getting their ideas from the harvard faculty club. so that's what you'll see around hillary clinton. it won't be so much about where she's gotten her money, but

you'll dig into those speeches, but i think it will mainly be about her being an out of touch liberal who just doesn't understand the concerns of regular americans. >> it seems to me, ezra, that as spring training goes for presidential campaigns, it just seems to me this is going to be easy for the clintons. they ea're going to figure out hang wage to deal with this. they're never going to like the numbers pause they've made way over $100 million. when bill clinton talks about tax rates, when you're paying 30% of $100 million, you're left with a lot of money. but it just seems to me that this is going to be an easy rhetorical fix for them when they get themselves steadied on it. >> yeah, this is a huge advantage for hillary clinton. it's why i think these last two weeks have been good, not bad for her campaign, if it happens.

she can basically run a campaign, release a book and act like it's a presidential campaign, get under that kind of scrutiny and get good at campaigning again. she's going to make big mistakes in 2014, but her opponents will be making them in 2016, and many of them are learning how to do a national campaign for the first time. >> thank you both for joining me tonight. coming up, in the rewrite, jon stewart's hilarious take last night on the irs so-called scandal. and a few things that were not included in the treatment of the irs scandal that you just might want to know. just a couple of footnotes to what jon stewart did last night.

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please rise to take the oath. raise your right hand. a little higher. [ laughter ] >> wow, that was easy. now, turn around and wiggle. we all might want to do that to the head of the irs, what does raising your hand higher have to to with telling the truth? i can lie. wait, i can -- hold on. i can lie. i can lie. i can no longer lie! [ laughter ] for my hand is too close to god.

>> that was part of jon stewart's brilliantly funny bit last night on lois lerner's lost e-mails. >> up until now, the whole thing is annoying. but not quite going. here's where it gets somewhat going. >> the irs has historically only preserved backup tapes for six months. >> all right. the government agency whose entire business model relies on forcing americans to live as borderline hoarders, only keeps their [ bleep ] for six months? [ cheers and applause ] you know, you never get a notice from the irs saying please bring your records down to us, if you can find them. >> the irs commissioner testified in detail about the

severe limitations on irs workers' computer capacity, which jon stewart summarized this way. >> even if the irs deleted the tapes, why can't they get her e-mails from the inbox? spoiler alert, it's stupid and preventable. each box back then only held 150 mega bytes of information. also known as five pictures of your family. or one picture of anthony wei r weiner's [ bleep ]. boom! [ bleep ]! plooep! yeah. he has a somewhat large penis. 150 mega bytes. that's 1% of what g-mail offers you for free. >> jon stewart went on to make

the very important point in a very funny way that the irs computers are primitive because america doesn't want to pay for the government america wants and expects. america doesn't want to pay the relatively small amount of money it would cost to bring irs computers into the 21st century, but america demands that the irs work perfectly. even with its ancient computers, the irs should work perfectly. and remember, spending money to improve irs performance does not increase the deficit, because it increases the irs' ability to collect revenue for the government. it makes money for the government. but republicans refuse to do that. in fact, their latest idea is to continue cutting the irs' budget. this time by $341 million. that's a lot of computing power you can buy with that. here are some helpful facts that didn't quite make it into the

report last night, and actually don't make it into most news reports about the irs story. the irs did not suspiciously lose all of lois lerner's e-mails. they did suspiciously lose some of them. but the irs turned over to congress most of lois lerner's e-mails. you rarely hear that in news reports. they turned most of her e-mails, including all of the e-mails from the period that congress is most interested in, the months preceding and the months during the last presidential campaign. now, let's do a multiple choice test to see just how well the news media has been keeping you informed about lois lerner's e-mails. how many of lois lerner's e-mails have been turned over to the house of representatives? a, none. b, hundreds. c, thousands.

d, 67,000. e, who is lois lerner? okay, time's up. it is, of course, d, 67,000 e-mails. as i'm sure most viewers of this program know. but america mostly does not know that because the news media simply doesn't have the time to add a sentence about those 67,000 e-mails in their irs scandal stories. another fact that is never included in the scandal reports is that none of the political organizations that applied for 504 c status didn't need to. so it's actually an unnecessary process.

another fact rarely included in the news reports is that not one republican political group that applied for that status was denied that status. not one republican application was denied. the one political organization that managed to somehow get denied was a liberal organization called emerge america. for most of the american news media, that remains one of the secret facts of the irs scandal. and of course, the most important secret fact of the irs scandal is that no political group should ever be granted that status under any circumstances because the law says that they shouldn't. the law says the organization must be operated exclusively for the promotion of social welfare,

as you heard me say many times. as viewers of this program know, that law was contorted in 1959 by a regulation written inside the irs as a guideline for how to enforce the law, and that regulation said that those organizations must operate primarily for social welfare. that was the new word, the regulation was in direct contradiction of the law. it changed the word exclusively to primarily. the speaker of the house is ready right now to see the president of the united states for, in his words, failing to enforce certain laws, but the speaker is not including this law in his lawsuit because the speaker does not want that law enforced as written. and no president since eisenhower has enforced that law as written. they have instead struggled to

enforce the regulation, which is simply too vague to enforce. the word primarily has no legal meaning. the word exclusively does. the law is an easily enforceable law because it's an absolute law, as written. there is no bend to it. and organization cannot be engaged in any political activity if the organization has 5014-c status, according to the law which has not been enforced since 1959. now, there's a lot of fun to be had with the difference between the words exclusively and primarily. and some of our amateur comedians have given it a try. >> now, if i said to my spouse, honey, we have an exclusive relationship, and i mean by that 49%, i probably would have problems in my relationship.

>> what kills me about this is that jon stewart and "the daily show" writers could do a fantastic job with the words exclusively and primarily. but now they won't because it just wouldn't be creative. so please to congressional staffers, tell your bosses leave the political jokes to jon stewart. ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. ♪

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stop taking cialis and get medical help right away. ask your doctor about experiencing cialis for daily use and a free 30-tablet trial. just wouldn't be creativ crystal moore, the formal police chief in south carolina appeared on this program in april telling us she was fired from her position because she's openly gay. the mayor says he fired her because of her performance. but on an audio recording allegedly of the mayor appears to support moore's claim. >> i would much rather have, and i'll say this to anybody's face, i would much rather have somebody who drank and drank too much, taking care of my child

than i had somebody whose lifestyle is questionable around children. >> yesterday, voters overwhelmingly approved a referendum to change the town's former government, stripping the mayor of much of his power. that opened the possibility that crystal moore would get her job back as police chief, but today the mayor hired a new police chief. joining me now is crystal moore. also joining me is councilman jared taylor. crystal, what -- take us through this sequence of what it felt like for you when you saw what the town council did in changing the powers and suddenly the mayor takes this action to hire someone else? >> i was devastated. the whole thing since i've been fired, the council has been standing behind me, the citizens have been standing with us. and then the council brought up

the referendum to change the form of government, so i was faithful that i would be back. the citizens came out and voted and showed their support and came to the polls in thunderstorms and rain, and we won 328-147. i felt like, okay, i've been hired back. i have any job back that i worked hard for 23 years to have. i've done nothing wrong. so i thought i had my job back. i was ecstatic. then 9:30 this morning, i come up to talk to the officers and final out the mayor hired a new police chief. so it's like a nightmare that will not stop. >> jared taylor, what can you do about that? >> it's our understanding that it's against the law to write a contract out yunilaterally, and he needed council approval to do that. the council supports crystal

100%. all six of us. >> crystal, that just sounded to me like you have the local law on your side, and having the council on your side wanting to enforce that law sounds pretty powerful. it doesn't feel to me like we've gotten to the last chapter of this story. >> we thought we had end of the story last night, because he said he would do what the citizens wanted. he told the newspapers, he told council members that he would do what the citizens wanted and once again today he has done the opposite of what the citizens want and opposite of what the policy says. >> crystal, it sounds to me like with the council on your side, the way this is going to go from here is the local law either allows him to do that or it doesn't. i'm betting on you at this point of getting back in there as the

next police chief. >> well, thank you, sir. we're working hard on it and we're not going to give up. >> crystal moore and jared taylor, thank you both very much for joining me tonight. >> thank you, as well. >> thank you for having all our supporters with good evening from new york, i'm chris hayes, we have a big show for you tonight. the supreme court has issued a unanimous ruling on the side of common sense, we will pop open the champagne later in the show. tonight we begin in mississippi, where failed tea party insurgent chris mcdaniel has yet to concede in the republican primary for u.s. senate. after losing the runoff election last night, in a surprise upset victory for incumbent thad cochran who's political life appears to be saved by a last ditch effort on part of his campaign to reach out to black democratic voters. turnout in last night's runoff in the state's counties was up nearly 40% from the primary earlier this month. turnout in the rest of t