• With: Charles Krauthammer

    O'REILLY: Look, I'm just trying to point out that I'm getting tired of the dance. You know what I mean? I'm getting tired of the dance. And you said --

    KRAUTHAMMER: But it's won two elections in a row, his dance. He has fractured the republicans.

    O'REILLY: Yes, but he doesn't have to dance anymore. Just say it now.

    KRAUTHAMMER: He managed -- with the dance, he fractured the republicans. He won on the fiscal cliff. And, now, he's going to want to win on sequesters.

    And you know what the argument he's going to make on sequester is, the republicans are the ones who are defending the rich, all the tax breaks for the oil companies.

    And they wanted to take the food out of mouths of babes, and take away healthcare from your mother.

    O'REILLY: Well, that was my next question.

    KRAUTHAMMER: That's his way of saying it.

    O'REILLY: You read my mind here. You read my mind here. He's not going to say --

    KRAUTHAMMER: Well, that's not going to save you from this show.

    O'REILLY: He's not going to say it tonight, "I'm going to raise taxes." He never says that, all right.

    On the rich, he did. But he is going to say, "We have to close the loopholes," all right, "on the private jets and oil companies, no more subsidies."

    That's what he's going to do, which is, in effect, a tax raise, all right. So, you agree with me there. He's not going to climb and say, "I'm going to raise taxes again on these damn people. I don't like them and I want their money."

    KRAUTHAMMER: But you are conceding that he dances. He won't say it straight. He'll talk about loopholes when he really wants to raise taxes. So, you agree with me.

    O'REILLY: But that's a good way of raising taxes for Obama.

    KRAUTHAMMER: That's exactly right. That's why he uses this other kind of language.

    O'REILLY: Right.

    KRAUTHAMMER: He wins with that.

    O'REILLY: Yes. And that's what he does all day long. All right, the final question is, the State of the Union is just propaganda to me.

    I've been doing this 35 years. I don't think I've ever heard a pithy statement from any president. He'd say, "Oh, we're doing great. We're doing great and whatever I do is going to help you."

    Every president, every one. Am I wrong.

    KRAUTHAMMER: Look, the reason he's giving this speech is not so that he lodges a pithy statement in the memory of the nation and it gets engraved on his tombstone.

    He's giving this speech to crush the republicans whom he already has on-the-run because he knows that the only thing standing between him and this left agenda that he wants to enact, which was stopped in the last two years, is to neutralize, to marginalize Republican House.

    And if he does that -- he started that with the fiscal cliff, he split them and he neutralized them, if he does it with the sequester and these other arguments, he then has the high road, unopposed to controlling Washington and to change the country the way he said he would and the way he started in years one and two.

    O'REILLY: All right, Charles Krauthammer, everyone. Thanks very much. We appreciate it.

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