Singer: I know that as many people as there were here, some people were not able to get in. I know that you're disappointed.

Pelosi: Of course. We had an event for Bay Area, Californians, who came out for the inauguration, and they were so excited. Some of them did not get in. We hosted them at lunch today and they told me their stories. Some of them were unhappy. Others were just so happy to be a part of what was going on.

All of them should have gotten in. And I'm asking what was this about? You can't just blame this on the crowds. There had to be a system here. So we're waiting on some answers on that because not only my constituents, but other member's constituents were shut out, too.

But you know what? They were in the city on the day when Barack Obama became President of the United States. They were part of a whole aura. And there were only 250,000 - only. When compared to the large number of people who came, it was only 250,000 tickets, and there were, what, two million people there, and there were three or four thousand who got shut out. That's terrible. There shouldn't have been any. Still, they were part of a much larger group of people who didn't have tickets in the first place.

Singer: What do you see the role of the House of Representatives institutionally right now. A lot of people will be focused on the Senate, because that's kind of the clearest story. "Can we get to 60 on what matters?" How does the House play a role in having its voice heard?

Pelosi: A great deal of what the President - we don't have to call him elect anymore - a great deal of what President Obama wants to do relates to the economy, and any appropriations bills or revenue bills, tax bills, must begin in the House. So there is no legislation, there is no change, unless it passes first through the House. So we take the first take on the legislation.

What you see on the screen there is the Appropriations Committee, which is in recess because there are votes on the floor, but today they are marking up the bill that we introduced last week, which is a reflection of the Obama agenda on how we go forward for recovery in America. This is the place. It has to start here.

Singer: You brought up the Appropriations Committee. Is there a hope that for the first time in a long time that all the appropriations bills will be able to be signed on time?

Pelosi: I hope so. I hope so. We passed ours on time, but we can't, then the Senate... But I wouldn't put as much importance on the timetable as in the quality of what is in the legislation. If it takes a little longer, it takes a little longer. But our goal is to be on schedule.

Singer: There will be times, naturally, when your vision is slightly different than that of the administration. One that comes to mind, at least reportedly, is the timing of repealing the tax cuts for the wealthy or the extremely wealthy. In your seat do you feel like you should give full deference? Or will you stand up?

Pelosi: Let me say this: There are certain principles that we have. One is of fairness in the tax code. Another is fiscal responsibility, to proceed in a way that does not increase the debt on our children and grandchildren.

So as we try to be fair in our tax policy, what we are advancing in the recovery package is a tax cut for 95 percent of the American people, the great middle class. We're only talking about a small percentage, one or two percent, five say, who will be affected by this. And it depends on what the figure is. Maybe it's 250 [thousand], maybe it's 300, whatever that happens to be.

But, the Republican Congressional Budget Office, when they were in power, said the biggest contributor to the national debt were these tax cuts at the high end. I'm saying they do nothing for the economy, they haven't. Most people didn't ask for that tax cut. So if you want to be fiscally sound, and you want to have fairness in your tax code, you'll give the additional tax breaks to the middle class.

Now, this isn't a discussion for this legislation. This recovery package will go with its own priorities and the rest. But at a future time, I would hope that before too long we would repeal those tax cuts. I don't know what the Obama administration's position is on it. They haven't said. What I do know is that we've campaigned on this in '04, '06 and '08. It wasn't fair and it was fiscally irresponsible.

Put it this way, here's your choice: Do you want to allow these things to continue in 2010, and in doing so say we're going to borrow money from the Chinese to give a tax cut to the wealthiest people in our country, and send the bill to our children? Send the bill to our children? I don't think we want to do that.

Singer: Relatedly, within the brilliance of the tax planning of the Bush administration and the previous Republican Congresses, the estate tax will go away entirely for one year, and then revert back to exactly how it was prior to the tax cuts. What types of changes do you see on that front?

Pelosi: I think when we're talking about taxes, whether it's the repeal of the high end tax cut or whether we're talking about the estate tax, I think we just have to look at taxes, put it all on the table, see what it does for the economy, see what it does for the budget deficit, and make some judgments about what our priorities are.

Singer: So a holistic approach rather than a piecemeal one?

Pelosi: Right. And we may end up with corporate tax cuts if we close loopholes so that people are not evading their responsibilities. But in the course of reviewing all of that, certainly we think and have always thought we have a good package for the estate tax. And our proposal, and the measure we are putting forth, is about $3.5 to $4 [million] per person, $7 to $8 for a couple, which should be exempted. It would cover something like 99.7 percent of the American people. Just not that high end again. And all these people say, "It hurts me." Most people are not affected by it. But we'll make it easier, so that [99.7] percent of the American people are not affected by it, just the very high end. And it's a lot of money up there.

Singer: Do you think that needs to be done before the one-year window in which there is no estate tax?

Pelosi: I just don't know the technicalities of the bill as to whether it should happen then. I wanted it to happen before now. I really did want something before now. So, yeah, I'd like to get it going. But if we're going to talk comprehensively with a new Democratic administration about where we're going on taxes, probably now is as good of a time that we have this on the table, because it will represent a big tax cut for many Americans who will never be affected by eliminating the estate tax, but it will have a tremendous effect on our deficit.

Singer: Last question on taxes. The Alternative Minimum Tax has been an issue every year it seems. Do you foresee a one-year fix or trying to take a larger bite out of it?

Pelosi: Again, these are issues that we have to deal with. It is one of those things that when you resolve it, the public doesn't know that they've been saved from something, so there's not an upside to getting it done on a one-year basis. I think that when it was first initiated, it could have been crafted much better in terms of... It was there to protect people, but because of some things that were not included in the legislation, it's now including many more people who shouldn't be part of the Alternative Minimum Tax. In other words, it shouldn't be affected if it is not covered in any given year. It's very complicated.

Singer: It should catch the people not paying taxes on the high end but not the middle class.

Pelosi: Exactly.

Singer: Healthcare continues to be a huge initiative of the administration. What are the chances? Is there a time line that you've worked out internally with Chairman Waxman? Also across the Capitol.

Pelosi: Ways and Means over here, too, is a big piece of it. Ways and Means, and Energy and Commerce, and then other committees are part of it.

That's a very big issue, and we'll be working in a very cooperative way with the President on that. We've taken some pieces. We've got our priorities on it clear in terms of the legislation that we write. But there are some pieces that we've already done. The State Children's Health Insurance program, which insures 11 million children. Insuring the children is a very important.

Singer: That's paid for as well.

Pelosi: That's paid for by tobacco tax. Secondly, in our recovery package we'll have a big piece for electronic medical records, [which] will reduce error, improve quality and reduce cost. So that's another big chunk. Children's health, electronic medical records.

We do have increased funding for the NIH. Not enough. I want more, so that we have the research, we have the technology, we have our children covered first. We did a big piece on veterans. So we've taken pieces of it. But we really still have to get to the place where we have quality, reliable healthcare available to all and we have to have affordable insurance for people for them to do that. And that's the piece we'll be working on.

Singer: Having been here in 1993 and 1994, do you think there are lessons to be learned, and what are they? Have you spoken with former Speaker Foley or other people who had been involved in the process then to fix the kinks that made it not happen at that point so that it can happen this time.

Pelosi: No. This will be an initiative from the White House, as that one was. It will be one, though, that we have worked on for the long time in the Congress. There are some options that we can present, some better than others. But, again, they see it within the context of some of the priorities that they have. We find our common ground in that respect, talking to Republicans. We're talking about something that involves many people in our country, and whatever the solution is we want it to be sustainable, and in order for it to be sustainable, we think it should be bipartisan.

Singer: So how will you ensure that the process is bipartisan?

Pelosi: Just as we do today we're having hearings, of course, but we'll have the markup where people can put their views forth. They may have the votes, or they may not, in committee. They have a lot more sway in the committee. Many more things are germane in committee that are not germane on the floor.

Singer: Would you foresee a somewhat open rule on legislation?

Pelosi: I don't know what the rule will be. It depends on where we come to agreement before. So I wouldn't even dare to venture into the Rules Committee without Congresswoman Slaughter. She's that very respected and in control chair of that committee.

Singer: Immigration is also one of those issues that Congress has tried to tackle in the past. Do you see anything happening in this Congress?

Pelosi: I certainly hope so. Again, with many of these things, like the recovery package, like healthcare, we have to get these agenda items accomplished, or advanced, and we have to do something about immigration. We cannot just have the situation where in the country there are millions of people who live who have no real status. We can't send them all to jail, we can't send them all home. So what do we do about it? Whatever we do has to do has to be comprehensive.

And we have our principles: Protect our borders, enforce our laws, have family reunifications, which is part of our principle of our immigration policy, have some path to legalization contained in whatever we do. We have to protect our workers, too.

Singer: If there's one message that you feel needs to get out to the netroots, the online community, at this historic moment, what is it?

Pelosi: Enjoy hope. That was the message at the prayer service this morning. And I think it was a good one. It was St. Paul to the Romans, that was the message he sent them, that was what was recited this morning. And I thought, I bet Obama selected that prayer.

But enjoy hope and let him lead. Let him fulfill the commitments he has made to the American people. We will do our best to work with him with our best thinking on how to get the job done for the American people. But give him a chance to lead. Give it time.

And I think make judgments at the end of a Congress, at the end of a term, but not on the day today, because he has the weight of the world on his shoulders. He brings to it a great vision, a great intellect, great strategic thinking, and great points to speak to the American people and give them hope. But he needs to be able to do it effectively, and that takes some time.

Singer: Terrific. Well, thank you so much.