"President Obama's speech this afternoon is a complicated deal. He says he wants the nation to reduce the federal debt by $4-trillion over 12 years, but that's not nearly enough. Mr. Obama also stated that the debt reduction will be accomplished by spending cuts and 'tax reform,' which I believe is code for 'tax the rich.' Ten years ago the USA spent about $1.8-trillion a year; last year the feds spent $3.4-trillion. You can see the intrusion of the 'nanny state' - the feds doling out money to help citizens who can not or will not help themselves. There is no question that government spending is out of control and the committed left wing approves of that. But taxing the rich isn't going to get the country out of the fiscal mess. Here's what will: First, go back to the spending level of 2008 and cut from there over a period of ten years; second, reform the chaotic tax system; third, a small national sales tax should be implemented on everything except food, medicine and medical care; and fourth, reform Medicare by allowing private insurance companies access if people choose that. If those items were passed by the pinheads in Washington, our debt would come down fast, world confidence in the American economy and dollar would soar, and the nanny state would be doomed."

Political strategist Dick Morris criticized President Obama for recommending tax increases on the wealthy. "Americans have to come to grips with the fact," Morris said, "that a tax increase on anybody is a tax increase on everybody because it hurts the economy. There's something very bad in this speech that no one is talking about - President Obama says that if the debt doesn't come down, the law will force him and Congress to reach an agreement. That means there will be automatic tax increases and would take the power to tax away from Congress and the President. His goal is to expand the size of government and to raise the revenues to a point where it becomes permanent." Morris also previewed an upcoming battle in Congress. "The big fight is going to be over Medicaid, which has gone up by 52% since Obama took office. This deficit was caused by not caused by Social Security or Medicare - it was caused by Medicaid, food stamps, and unemployment insurance."

For an opposing point of view, The Factor turned to liberal Congressman Dennis Kucinich. "The wealth in America is accelerating upwards," Kucinich posited, "and our tax code has helped facilitate that. I'm glad the President is reversing his stand on tax cuts for the rich, because he recognizes that those tax cuts didn't create jobs. I want to see more wealth created and one way to do that is to make sure that everyone is working - all these people out of work is a drain on our economy. And we have spent trillions of dollars pursuing wars that have not made us safer." The Factor reminded Kucinich that federal spending has soared over the past decade: "In 2001 we were a prosperous and vibrant country, but the federal government spends twice as much money now. I don't think we need to do that."

Some small-government advocates, among them David Boaz of the libertarian Cato Institute, complain that last week's budget deal was far less consequential than advertised. "People are being misled with all the hype about 'the biggest budget cut in history,'" Boaz said. "The fact is that it's 1% of this year's federal budget. It is a small cut and it's just not true that it's the biggest one in history." Boaz portrayed President Obama as a true believer in a leviathan government. "I have no doubt that he came into office wanting to make government bigger so it can take over more aspects of our lives, and so far that's what he focused on. But now we're heading toward an election and he wants to be seen as someone who is cutting spending." The Factor again posed a rhetorical question: "Stripping out the wars and the war on terror, why can't we get back to the same level of domestic spending we were at in the year 2000?"

Tonya Reiman focused her body language expertise on The View's Joy Behar, who was verbally outmaneuvered by her conservative colleague Elisabeth Hasselbeck. "Joy always has a very confident demeanor," Reiman observed, "but all at once there was a stunned look and silence. Her eyes started darting back and forth and it was obvious that she didn't know what to do. Her lips went into a pucker." Reiman also analyzed White House advisor David Plouffe, who spent part of his weekend demeaning Donald Trump. "The first word that came to my mind was 'smarmy.' He had a smirk that went all the way up his cheek."

The Factor invited Dennis Miller to opine on President Obama's speech on the deficit. "Let's face facts," Miller said, "we're dangerously near a tipping point in this country. We have to deem how many people in the 'working class' are helpless people who deserve help, and how many are clueless people who don't deserve the time of day. Americans are good-hearted people who want to take care of the helpless but don't give a rat's ass about the clueless. People want to give, but I think they're getting sick of propping up losers. This is the Serengeti Plain and if somebody's going to perpetually exhibit a limp, they're going to get fed on. That's the way life works." Miller also weighed in on Prince William's upcoming wedding. "Cool guy, hot chick, and I don't think he'll ever let happen to that girl what happened to his mom. But I would keep Charles away from the toast at the reception because he's so nuts with the global warming, if he holds up a glass of bubbly he'll start crying about the CO₂ bubbles that are snapping to the surface in the glass. By the way, I see that President Obama sent a gift - an Obamacare waiver. They were registered with Carvel, so I got them a Cookie Puss."

Fox Business anchor Dagen McDowell screened footage of union members staging raucous protests across America. "This does seem to be a growing trend," McDowell said, "and it's the same thing over and over - they do not want spending cuts by governments. It seems to be a desperate cry by a failing movement because they're worried about their purse strings being cut." McDowell also watched a clip of Comedy Central Jon Stewart, who argued that eliminating the Bush 'tax cuts for the rich' would greatly decrease the deficit. "On the other side of that," McDowell pointed out, "you could argue that revenue would collapse because the economy would collapse."

Marion Rauch, Ocala, FL: "O'Reilly, well I am so glad you cleared up the myths surrounding President Obama. Come on, Bill, give us the facts not opinion."

Ken McFadden, LaGrange, GA: "O'Reilly, will you stake your professional reputation that Mr. Obama is constitutionally eligible to be president?"

Chris Wise, Boston, MA: "Bill, your facts about the myths floating around the president demonstrate why you are a stand up guy."

Wednesday's Patriots or Pinheads: John Travolta and Lindsay Lohan, who will play John and Victoria Gotti in an upcoming film. Are the Gotti-portrayers patriotic or a pinheaded? Cast your vote here on BillOReilly.com. Tuesday's P or P asked about the Texas police officer who pepper-sprayed a squirrel when the critter was running loose on a schoolyard. 73% of you said the cop's reaction was squirrely and pinheaded.