(BEGIN VIDEO CLIP)

SEN. JON KYL, R-ARIZ.: Here is what the president said. The problem is, he said, if we secure the border, then you all won't have any reason to support comprehensive immigration reform. In other words, they're holding it hostage. They don't want to secure the boarder unless and until it's combined with comprehensive immigration reform

BILL BURTON: No, the president didn't say that. Senator Kyl knows that the president didn't say that. What everybody knows because the president has made it perfectly clear is that what we need to do is everything that we can to bring about comprehensive immigration reform.

(END VIDEO CLIP)

BREAM: Let's bring in the panel to talk about it again, Tucker Carlson, A.B. Stoddard and Charles Krauthammer. And just to give you the next chapter in the saga, after the comments from the White House from Bill Burton today, our producer Trish Turner ran into Jon Kyl.

This is the last thing he said, "I portrayed the conversation totally accurately. The president cannot say what I said is incorrect." Charles, a senator accusing the White House of one thing, the president and the White House accusing a senator of lying. How serious is this?

KRAUTHAMMER: There is no way we'll adjudicate what actually happened with only two people in the room. It looks as if neither is giving quarter on this and they're all insisting on the truth of their position.

But the underlying argument that the Obama administration, like the left of the Democratic Party, is holding out on enforcement as a chip with which it will purchase amnesty is true. There is no doubt that -- the whole idea of comprehensive is a way of saying unless you give us what we want, amnesty or a path to citizenship, we will hold back on enforcement because that is the only chip in negotiating with you.

And it is a scandal because it is a duty of the federal government, whatever it wants. It has to execute the laws. Illegal immigration is illegal. It has to be enforced. It's a federal responsibility. And not doing it as a way to achieve some kind of legislative agenda is a dereliction of duty at the least.

Now, Kyl is a straight shooter. I believe him implicitly. On the other hand, Obama is a very smart man and I don't know that he would actually explicitly say that, because it really is cheap and tawdry. I suspect maybe something in between happened, where there was a statement about you know, if you guys give us x, we'll give you y, which the two men could interpret differently and that's what I suspect may actually have happened.

BREAM: A.B., Charles makes an excellent point, as always, about the fact that the president is very measured and very smart about what he says. Do you find it hard to believe from that angle that he would give away so much?

STODDARD: He is nothing if not disciplined, and it's stunning to imagine him being blunt and talking that way, particularly with Senator Jon Kyl who has been asking for 6,000 National Guard troops to the border, who's representing Arizona where it's a huge issue. Obviously, the government is now going to bring a case against the Arizona immigration law, a very heated issue.

I wasn't in the room so I'm not going to say that the president acted stupidly. And I'm not going to call, you know, Senator Jon Kyl a liar. He is, as Charles mentioned, one of the biggest work horses in the Senate. He never seeks the spotlight. He is always head down, doing something to legislate and not to get himself on television. And he is the last person that President Obama wants to be in a shooting match with right now about who is lying. This is embarrassing for the White House. This is only going to further excite the border security crowd, who is much more enthusiastic and ready to vote in this fall's midterm election than the immigration reform opponents who haven't gotten anything out of the Democratic leadership or the White House except for promises and talk. This is the upshot of it. Politically it is very tough for the administration.

BREAM: Tucker, are you surprised that such an important nugget to come from Senator Kyl, we'd find out about it through YouTube video snapped at a town meeting?

CARLSON: I think it's odd. I want to restate what Charles and A.B. said. There are some senators one could imagine would pop off and say some lunatic things. In fact, a lot of them do that. But Senator Kyl, a lawyer specializing in water rights, is the last guy to do that. He is eminently believable.

This is an odd way to find out. I know that his office had really no apparent interest in publicizing it. They confirmed in the background that it in fact happened but they didn't want to talk about it. I'm not sure how to account for that. I'm not sure what that means. I will disagree in part with what A.B. just said. I think there may be an upside for the administration in this conversation. There usually is when the conversation turns to immigration, which is one of the reasons that Senator Reid moved it up on the legislative calendar. It does incite part of the Democratic base. Hispanic voters are upset and increasingly so by what they see as the Republican hostility to them and their position. This is a way, this conversation in general -- not this specific conversation, but the general conversation is a way to get the Democratic base to polls.

BREAM: Charles, I'll give you last word. Does this pour fuel on the fire about the immigration debate at this point, the scandal?

KRAUTHAMMER: I'm not sure it changes the underlying dynamics. They will revolve around the law passed in Arizona. There will be a lawsuit. That's where the action will be. All of the energy and the argument will be about that.

So I think it will be a good, substantive argument. I'm glad the courts will look at it. The courts is where we adjudicate these kind of arguments between here and the federal government and the states.

I think this is going to be a blip. It will probably look because it's unresolvable, it will remain as he said, he said, and it will in short order fade away.

BREAM: All right, we'll see. Panel, thank you very much.