• Next up, the IRS deal.

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    O'REILLY: Douglas Shulman, former IRS chief, he was cleared into the White House 157 times, more than any of your cabinet members, more than any other IRS guy in the history by far. Ok why was Douglas Shulman here 157 times, why?

    OBAMA: Mr. Shulman as the head of the IRS is constantly coming in because at the time we were trying to set up the healthcare.gov and --

    O'REILLY: What does he have to do with that?

    OBAMA: The IRS is involved in making sure that that works as part of the overall healthcare team. I do not recall meeting with him in any of these meetings that are pretty routine meetings.

    O'REILLY: Ok so you don't -- you don't recall seeing Shulman because what some people are saying is that the IRS was used.

    OBAMA: Yes.

    O'REILLY: At a local level in Cincinnati, maybe other places to go out.

    OBAMA: Absolutely wrong.

    O'REILLY: How do you know that? Because we still don't know what happened there.

    OBAMA: Bill we do, that's not what happened. Folks have again had multiple hearings on this. I mean these kinds of things keep on surfacing in part because you and your TV station will promote them.

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    O'REILLY: The FBI continues to investigate the IRS situation. So it's not as settled as the President implies. And again we don't have anything to do with that. Now will the feds hold anyone accountable in the IRS situation? I doubt it.

    Finally, a great question from a FACTOR viewer.

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    O'REILLY: I got a letter from Cathy La Master, of Fresno, California and I said I would read one letter for the folks, all right?

    "Mr. President, why do you feel it's necessary to fundamentally transform the nation that has afforded you so much opportunity and success?"

    OBAMA: I don't think we have to fundamentally transform the nation.

    O'REILLY: But those are your words.

    OBAMA: I think that what we have to do is make sure that here in America, if you work hard you can get ahead.

    (END VIDEO CLIP)

    O'REILLY: But here's the deal, no one can make sure that happens -- No one. It's a noble goal but basing expensive policy on a dream runs up a huge debt and is ultimately frustrating to the taxpayer. That being said, the President and I agree that rewarding hard work does build a strong country.

    - You can catch Bill O'Reilly's "Talking Points Memo" weeknights at 8 and 11 p.m. ET on the Fox News Channel and any time on foxnews.com/oreilly. Send your comments to: oreilly@foxnews.com.