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Lou Dobbs of CNN and Dean Martin (R), Arizona State Senator.

DOBBS: You can call it the Boston Tea Party Phoenix, Arizona style. Arizona says its residents are paying billions in federal tax dollars without receiving any protection from the federal government on border security in return. Tonight, Arizona state legislators are debating whether to withhold federal tax dollars to win Washington's attention.

Arizona State Senator Dean Martin, the sponsor of this tax revolt bill, joins us tonight from Phoenix to explain the plan. And what in the world are you doing, diverting IRS dollars to the state?

DEAN MARTIN (R), ARIZONA STATE SENATOR: Well, the plan is, is everyone who would pay their normal federal income tax, they just send the checks to the state of Arizona. We'd aggregate that amount, and subtract out our costs for illegal immigration, and forward on the balance to the federal government.

DOBBS: Have you checked to see whether or not this is legal?

MARTIN: Well, the Tenth Amendment of the Constitution gives the states the authority for anything that's not delegated in the Constitution. The 16th Amendment gives the federal government the right to collect an income tax. However, it does not specify how. And so, we're going to redefine that, that the 50 states shall collect it for them, and deduct out any federal mandates.

DOBBS: It's an interesting concept, since federal government is doing absolutely nothing in terms of enforcing immigration law, and is woefully inadequate in providing border security. Other states could follow your lead. But first, how much support is there within the Arizona state legislature for what you are advocating?

MARTIN: Very strong support. As it comes out here, we are looking at $1.3 billion -- and we're a small state, our whole budget is about $8 billion -- in uncompensated costs for illegal immigration, in health care, education and incarceration.

And so we spend $25 billion that our citizens give to the federal government, and they can't individually fight the federal government, but the state's basically saying we're going to come in there and fight for you.

DOBBS: Has your legislation now passed committee?

MARTIN: If passed out of the Finance Committee last week, and is moving towards the floor.

DOBBS: And what is your sense of the support that you will enjoy there?

MARTIN: I believe we'll have the support on the floor. I hope to move it out here in the next month, and hopefully get it through the House and up to the governor's desk in time for April 15th.

DOBBS: Well, Governor Napolitano declared a border emergency in your state. Is it your sense that she would support you?

MARTIN: Well, I would sincerely hope so. She declared a state of emergency, but didn't do anything. She asked the federal government -- she actually sent them a bill, and they didn't pay it, for illegal immigration. So we're kind of looking at this as well. We're taking the federal government to collections.

DOBBS: Well, Senator Martin, we thank you very much and we appreciate you being here and wish you luck.

MARTIN: Thank you.