Updated

This is a RUSH transcript from "The O'Reilly Factor," June 3, 2010. This copy may not be in its final form and may be updated.

Watch "The O'Reilly Factor" weeknights at 8 p.m. and 11 p.m. ET!

BILL O'REILLY, HOST: In the "Culture Warrior" segment tonight: three hot topics. As you may know, the USA owes $13 trillion — with a "T" — and many individual states like California are broke. In Washington state, they're in very bad financial shape, and so the liberal legislature is imposing some new sin taxes. And what are those sins? Eating candy, chewing gum and drinking bottled water. We're not kidding.

With us now, the "Culture Warriors" themselves, "Fox & Friends" co-anchor Gretchen Carlson and Fox News analyst Margaret Hoover. OK. So sinning by chewing gum. That means the Doublemint Twins are damned.

Click here to watch the segment!

GRETCHEN CARLSON, CO-HOST, "FOX & FRIENDS": I guess so, and eating a chocolate bar, you're damned, and bottled water. I mean, imagine that. Here's the crisis, Bill. States don't have money. States do not have money. And if we want to federally bail them out, then I guess that's one option.

O'REILLY: So Washington state, how much are they in the red?

CARLSON: Three-billion-dollar budget shortfall.

O'REILLY: Three billion?

CARLSON: Here's why it's important to vote in your state. Because you want to cut taxes, you want to save money, or do you want to spend more?

O'REILLY: OK. Now, Hoover, what's the reaction to bottled water and candy and gum and all of that? What's the reaction?

MARGARET HOOVER, FOX NEWS ANALYST: Well, generally, I don't like sin taxes at all, because sin taxes and nanny state politics represent the government making a moral judgment on people's individual choices.

O'REILLY: What — what about public health judgment though?

HOOVER: Doesn't even address the root cause, which is overspending, the real sin. They're trying to balance the budget on the backs of children.

O'REILLY: They're going to say — I don't like taxes either. But they're going to say, look, candy makes you fat. Gum erodes your teeth. And bottled water, the plastic is polluting the atmosphere. That's what the left is going to say.

HOOVER: They're balancing...

O'REILLY: Therefore we want to discourage that, and we want to get money at the same time so we can give out more entitlements or whatever they're during out there in Washington state. And you say?

HOOVER: The real sin is the spending, not the candy consumption, not the bottled water consumption.

O'REILLY: OK. But you would think that the people in Washington state would wise up just a little. I know it's probably hopeless in Seattle. "Sleepless in Seattle"?

CARLSON: I got it.

(CROSSTALK)

HOOVER: All of this is, by the way, only going to raise $62 million in the next two years.

O'REILLY: And they're $3 billion down.

(CROSSTALK)

O'REILLY: OK. Now, we have a Citibank lawsuit. A young woman says that she was fired, and Citibank, of course, denies all of this. And we don't know. We don't know what the woman was doing. We don't know. The woman says she was fired because of the way she dressed in the workplace. Roll the tape.

(BEGIN VIDEO CLIP)

DEBRAHLEE LORENZANA, SUING CITIBANK: They didn't feel that for me that I was allowed to wear turtlenecks, pencil skirts, fitted suits, basically what every woman in New York wears to go to work, because their exact words were, I drew too much attention.

(END VIDEO CLIP)

O'REILLY: Again, we don't know what happened, but it's an interesting case about what you can and cannot wear in the workplace. And you say?

HOOVER: Well, given that Citi said that she was actually fired because she wasn't performing in her sales performance. Generally, in terms of the principle of what woman and what men should wear to work, I think you should never dress in a way that overly emphasizes sexuality in work. And I would say to women especially — I mean, not especially but women generally, the feminist movement got us to a point where we could enter the workforce in the same jobs that men could always enter as well. And the point of dressing — women should dress in ways that bring attention to their brains, not their bodies.

O'REILLY: A little silver hat then?

CARLSON: And I don't think women should be faulted for having an incredible figure like that woman has and a beautiful face.

O'REILLY: OK.

CARLSON: Because if women are strong in the workforce and behave like men, like they're told to do, then they are a word that rhymes with "witch."

O'REILLY: But look, there's a fashion...

(CROSSTALK)

CARLSON: And when they are beautiful, then they're too beautiful.

O'REILLY: Look, there's fashion these days, particularly in the summer, that emphasizes, if you're in shape, your body. That's what fashion emphasizes. So the woman's right in the sense that, look, this is what it is on sale. This is what we are wearing, many women are wearing. But, you know, again...

HOOVER: I don't know why though she's on the cover of The Village Voice this week, modeling all of her clothing. And, frankly, I mean, look, it looks like she's starting a PR campaign to start her modeling career.

CARLSON: I myself, in a TV job, was asked to dress down and not look so pretty. So...

O'REILLY: Not in this job here.

CARLSON: Not in this job; in a former job.

O'REILLY: Right.

CARLSON: So I believe that this happens to everyone. Here's the problem. When women speak up like she is, they're — it's never a good outcome for the woman. It just isn't.

O'REILLY: No, but you can also — and I'm just saying this as devil's advocate — trump up anything, embarrass a big company, and hope to get a settlement.

OK, Barbie. Now, maybe we're going to have to have Barbie get fired by Citibank, because Barbie is dressing in a very provocative way.

CARLSON: That was good one, O'Reilly.

O'REILLY: Thank you. I appreciate that. I worked on that for months. So little girls buy the Barbie doll, and now we have kind of Barbie dolls that are slinky or something like that. So you say?

CARLSON: I say that a Malibu Barbie back in the '70s was voluptuous and she had a plunging bathing suit. However...

O'REILLY: This is Malibu Barbie.

CARLSON: You remember her back in the '70s?

O'REILLY: Isn't she married to Leonardo DiCaprio?

CARLSON: Ken. I think she was sort of with Ken. But anyway, the bottom line is, do we really need to show that much cleavage with Barbie?

O'REILLY: I don't know.

CARLSON: The target audience is 8. I would not buy that doll for my daughter, who's 7.

O'REILLY: How about you?

HOOVER: You know what? I just sort of feel, like, all girls who are playing with these Barbies don't even have cleavage. They don't even know what lesson to take from this.

O'REILLY: No, but it sends a message.

HOOVER: Barbies are undressed all the time anyway. Barbies are a terrible representative of the female body type anyway. If Barbie was a real person, she'd be, like, 10 feet tall in order for her legs to be proportionate to her torso.

O'REILLY: Right.

HOOVER: And her arms and her — so honestly, I'm more worried about Burka Barbie. I'm more worried about Burka Barbie than I am breasty Barbie.

O'REILLY: You know what's really sad about this? In one of those displays, the most provocative one on the Barbie doll, Ken had a heart attack.

HOOVER: Oh, come on.

O'REILLY: Yes. He's in the hospital.

CARLSON: Ken doesn't exist anymore. So maybe that's what happened to him.

O'REILLY: Ken doesn't exist? What happened to Ken?

CARLSON: I don't think so.

O'REILLY: Did they deport him? He's an illegal alien. He's out of here.

CARLSON: One good thing about Barbie. They have career Barbies now.

O'REILLY: Yes.

CARLSON: And those are the ones I would choose to buy.

HOOVER: And they dress appropriately for work.

O'REILLY: All right. Barbie dolls, everybody. "Culture Warriors."