This is a RUSH transcript from "The O'Reilly Factor," November 30, 2012. This copy may not be in its final form and may be updated.
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BILL O'REILLY: Now for the "Top Story" tonight -- reaction. Here now Fox Business anchor Lou Dobbs. I want the Dobbs plan to solve this mess.
LOU DOBBS, FBN ANCHOR: Finally somebody asked me and I appreciate that Bill. Let's go straight to it. Right now there are no rules in this game between Obama and Boehner. And until two sides in a negotiation agree to the parameters and the purpose of the negotiation, it's just blather. It's just media noise.
And I would suggest and the first part of that plan is to set the parameters. That means ok -- the top two percent of the country are paying just about 40 percent of the taxes in this country. What percent does the President want? Boehner needs to stand up and say everything is on the table. Taxes, entitlements, you name it, we're ready to talk.
O'REILLY: So you -- you would begin with the tax situation, all right? See I would begin with the spending but you're smarter than me.
All right, so -- so you say to Mr. Obama, all right, we're willing to compromise here if it's reasonable.
O'REILLY: All right? How much more do you want to squeeze out of the upper two percent? And he says probably, I want to go back to the rate Clinton had 39.5 and I want to raise capital gains to 25 percent.
O'REILLY: Do you, Lou Dobbs, give him that if he said -- if -- if there is something else that he has to give?
DOBBS: I -- I certainly would not give him that without conditions.
O'REILLY: But you would think about it?
DOBBS: Oh absolutely. That's what I'm saying.
O'REILLY: All right, ok so let's -- all right, so the Dobbs plan says that reasonable, reasonable, what does that mean? That a little bit of tax hike on the wealthy, and it wouldn't be a little bit it will be a lot about -- what is it estimated to be about something like $95 billion a year.
DOBBS: $82 billion.
O'REILLY: A year?
DOBBS: Per year.
O'REILLY: Right ok but that's still not -- all right. So, but then to get those tax hikes, what does Lou Dobbs want as far as spending cuts?
DOBBS: Well, you know, first of all I wouldn't negotiate in the media it would be the first rule that I would suggest.
O'REILLY: Ok but since we are in the media we have to do that.
DOBBS: But since we are - we are going to violate our rule.
O'REILLY: Ok violating.
DOBBS: The first thing I would do is say that the condition precedent to all of this is I want to know first, you've been campaigning, Mr. President, for literally five years about what's fair. I want to know what the percentage is that you think the top 20 percent in this country should be paying in taxes. And then we will make our adjustments.
O'REILLY: All right. But you're going to have to get Barack Obama to actually commit to cutting some programs, which he doesn't want to do. He doesn't want to cut anything.
DOBBS: Of course he doesn't.
O'REILLY: He doesn't want to cut the snail (inaudible). He doesn't want to cut the mushroom exploration.
DOBBS: That -- that's why - this is a great opportunity for John Boehner to put forward the Boehner plan. Not the Dobbs plan. The Boehner plan and say --
O'REILLY: So specifically say this is what we have to cut?
DOBBS: We're going -- here is what we have to do.
O'REILLY: All right.
DOBBS: We have to raise the retirement age in this country. We -- for Social Security. We have to raise the retirement age for Medicare. And we have to get serious as they did in 1993 under a Democratic president, President Bill Clinton and say this is the target. $500 billion a year in reduced deficit. And we're going to get there.
O'REILLY: $500 billion a year you would reduce.
O'REILLY: See I would double that I would do a $1 trillion.
DOBBS: Well, you can't quite get there but I think you can get.
O'REILLY: What if I -- what if I sold Rhode Island then I could probably get that.
DOBBS: If you sold Rhode --
O'REILLY: The Chinese would buy it?