stanford university went head to head in the very first rose bowl and helped kick off an american football tradition. it all began with a festival called the tournament of roses featuring things like bronco busting and ostrich racing until organizers added college football to the mix. some 8500 people showed up at that very first game and even though the stadium only had seats for 1,000, michigan routing stanford 49 to zip. stanford threw in the towel with 8 minutes left on the clock. officials didn't arrange another game until years later in response to public demand. now it's a new year's day tradition. pasadena got ready for some football 111 years ago today. and now you know the news for this new year's day 2013. i'm rick folbaum in for shepard smith. we're back tomorrow, "studio b," 3:00 p.m. eastern. noon pacific. the factor is coming up next. >> bill: the o'reilly factor is on.

tonight: >> a talking points bananza. is traditional america gone for good? that is the subject of this evening's talking points memo. >> we will bring you some the most provocative talking points of the year. including our exclusive analysis of the war on christmas. the secular progress sifs and elites have sought to diminish religion in the public square. >> bill: plus, how has america changed after this year's election? >> bill: i believe traditional back but itcome will take a very special person to make that happen. >> bill: laura ingraham, juan williams, mary katharine ham and lou dobbs will all weigh in. doesn't matter if you are a socialist or capitalist. we are talking about government subsidizing and incentivizing behavior. >> a special talking points edition of the factor right now. >> you have to fill in the blank. i just listed 8 things. what did they vote for? caution, you are about to enter the no spin zone the factor begins right now.

>> bill: hi, i'm bill o'reilly. thanks for watching us tonight for this very special talking points edition of the factor. we begin with the war on christmas, the big picture. whenever the far left viciously attacks you know you are on to ssmght every year when we report secular progressive assaults on the traditions of christmas, the crazy left loons gain i have the tri ole lick campaign to diminish me and this program. there is a reason why they are doing that and it has nothing to do with santa claus. let's take it step-by-step. no one tells you a person could possibly see a secular display of christmas as imposition of religion. when the rockefeller center christmas tree was lighted last night, no one threw themselves to the ground screaming about jesus. that did not happen.

new york city police did not round up the onlookers and force them into saint patrick's cathedral a block away. nothing religious happened at the tree lighting, it was just a fun occasion. also you heard an atheist on this program say the federal holiday of christmas imposes religion on him. what religion would that be? he says christianity but christianity is not an organized religion, a church that can be imposed. there are many different churches that promote the philosophy in different ways. does the atheists think the program government is promoting mormonism. luted rannism, catholicism, what? the crazy left web site people have emecialgdz. these people are so stupid it's painful. christianity is a philosophy. you don't have to believe jesus is god in order to admire his view on life. millions of muslims admire jesus as a prophet.

in fact, the united states was founded on judeo-christian philosophy. that's what shaped our constitutionalct tenets. again, if yous are stone cold dumb and don't understand the difference between an organized church and philosophy, i cannot help you. in 1927, president calvin coolidge made my point when he he sent this christmas message to the american people. quote: christmas is not a time or a season but a state of mind. to cherish peace and goodwill be plentyyour in mercy. if we think on these things there will be born in us a savior and over w us will shine a star sending its gleam of hope to the world, unquote. that's from my private collection, by the wayo . is calvin coolidge promoting religion in that christmas greeting? of course not. he is promoting a mind set of goodwill now, the more intelligent far left people

realize what i'm telling is you an absolutely correct historically and theologically. many of them don't care. they want any hint of spirit the public square. earlier this week rhode island governor lincoln chief was asked by a reporter exactly why he will will not call the state christmas stree tree a christmas tree. designed howd some people like you have negated your traditions. >> absolutely right. gay marriage or accepting immigrants. you areti absolutely right they don't want to believe this is is time to change it. >> bill: ah-ha. times are changing are they? the governor told you the b truth. he he is tying the situation into secular progressive politics. mr. chief wants to ignore tradition of america and build a more inclusive nation where judeo-christian philosophy is tamped down. that's the big picture here

that's the big picture, that's what it is all about. secular progressives want a new america. traditional christmas isn't a part of it. that's the mental mow. now for thef top story tonight. we were able to talk with governor chaf and i admire him for coming on because he knows, he knows that i'm pretty fed up with his point of view. so governor, a holiday tree? really governor? what's the tradition of a holiday tree? where does the holiday tree come from? o >> last yeared when subject came up about what we're going to do this time of year i said just do what the previous governor did. we're not going to change anything. that's what we did. somehow this has all erupted into some kind of controversy. >> bill: do you know the traditions of the tree and why it is used around the christmas season? do you know where that came from? >> i have heard all the different scenarios. some sayt it's something to do with paganism.

the mains thing it's a happy time of year. >> bill: all right. i'm happy, your happy. >> having it at my house i have a christmas tree. it's a happy time in my house and it should be here. we also have to be conscious of changing times. >> bill: we will get to the changing times things in a moment. the christmas tree first came from germany. they decorated it for the children then it mored into santa claus and gifts under the tree. >> you are going to lecture me now on traditions. >> bill: wait wait wait. >> go ahead. tell me a story. >> bill: there is a tradition to itn, that supersedes the governors of rhode island with all due respect. there is a tradition to the christmas tree, all right? it's there in context. so guys like you come in and previous governors in other places. you know what? we don't want the christmas tree tradition anymore.

that's what tees people off. you want people happy? they are not happy with you, governor. >> did you have to go to public school and say the lord's prayer io n public school. we had to. i did. and get. this first we had to say pledge of allegiance which is good then all of us had to say the lord's prayer. our father, which art in heaven, hallowed be thy name. then the supreme court ruled that shouldn't be. not all students have to say a christian prayer. it was outrage. now you look back on it and you think ofik course you can't ask non-christians to say a christian prayer in public school. controversies you generated them here but they really shouldn't be controversies. this is a public building paid for by everybody of. >> bill: not at all. >> it's changing times. >> bill: it's not a symbol of religion are. >> thisbo is secular building. this is is a public building paid for by people of all religions. >> bill: governor, the lord's prayer is obviously a

religious expression. a christmas tree. >> it used to be said. i used to have to say it. everybody used to havee to say in elementary school. public school. times change. >> bill: you are making invalid comparison. >> very valid. >> bill: doesn't make any sense. >> this is a public building paid for by people of all religions. >> look, the white house has a christmas tree, okay? what's the difference? the white house has a christmas tree. >> you are wrong, bill. they call it a white house tree. >> bill: no, it's a christmas i tree. barack obama calls it a christmas tree. he is your guy. he calls it a christmas tree. >> well, times are changing and here in this buildin previous governors, north only me. i just said continue what the previous governor has done and that's what i did. you like to make a lot of controversy, so all i can say is. >> bill: governor, you are the guy making the controversy. all i want to do is keeping the traditions of christmas that make most americans happy. the polls show 90% of americans celebrate christmas and they want to call it a christmas tree. you are in the minority. you are imposing your will. and you are making people

unhappy in the season of joy. that's not right. you are not doing the right thing, governor. >> i don't make anybody happy. >> bill: i know. you are not making anybody happy. everybody is unhappy with you. all right in the a atheists want you to burn the holiday tree. >> merry christmas. >> bill: they want to just burn it. you know i'm right in your heart you have know i'm right. >> merry christmas. >> bill: all right, governor. thanks for taking the heat. we appreciate you coming on. >> have a good day. >> bill: by the way, the governor gave the good people of rhode island exactly 30 minutes to attendex the tree lighting ceremony. why the short notice? he didn't want protesters? next on the run down, ms. laura ingraham will weigh in on the tensions between traditional christians and those who want to radically change the country. [ male announcer ] coughequence™ #8. waking the baby.

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>> >> bill: continuing with lead story. joining us from washington is a ingraham.

governor chafee looked a little unsteady in that interview especially when he denied that the white house was calling it a christmas tree and obviously they do. i don't think the governor is a badvi man. do you have any idea what's going on inside his head? >> the chafee who stole christmas, complete bill with a drive by tree-lighting ceremony. i have never heard of a drive by tree lighting ceremony before. that is one of theit funniest things i havee heard yet. i mean, this is supposed to be a time where the entire community in providence can get together. all supposed to come together and have a moment, right? chafee has to russia deal through because he knows that even the people of rhode island maybe with the exception of brown think this is ridiculous. right? but this has been going on, bill, for about five decades now. because traditional christianity and the churches for the most part have been resisting the great, you know, sexual revolution, the free love stuff and everything that came along with it the secular

progressives and elites, very powerful. they have sought mostly through using the courts to diminish traditional religion in the public square. that means a diminishment of firsint amendment rights in the publicth scare. then it trickles down to silly things like charlie brown christmas pageant that a little rock school. let me stop you for a moment alleged explain that the christmas tree lighting in providence, rhode island is a big deal. everybody knows that and they can bring their children. spokesperson said there wasn't going to be a any lighting at all. the people in rhode island went in an uproar. there had to be a lighting. we will sneak it in so nobody knows about it. >> notice what he did in this interview with you. he he did what most on the left do in a conversation like this. rather than debating the facts and the merit and the constitution. instead fall back onio you need to getac happy and evolve and get with the program. the fact of the matter is

there are millions of americans across this country though ho celebrate christmas. this is is a tradition that is grounded in our history. that our family former mts have acknowledged and celebrated with the people. it doesn't mean there is a national religion and people have to believe in jesus christ. he doesn't want to talk about j that he wants to talk about how times have changed and basically everybody who doesn't agree with him has to get with the program. call it y a holiday tree and then in these instances where prayer in school a moment of silence, you have to go along with that too because a bunch of liberal judges whether end up forcing that down the people's throat. that's why mitt romney should have talked about judges in this lexington election cycle. the action is in the courts. conservatives are losing oftentimes in the courts we are losing the presidential election. >> bill: you are a converted -- laura converted to catholicism. >> yes. >> bill: i'm sure in the beginning when you were thinking about doing it you were attract to the philosophy how it wasd

incorporated into the roman catholic church. there wasn't any roman catholic church when jesus was walking or when he was executed. that came afterward. and a considerable amount of time afterward. the philosophy of a jesus attracts people and thenf they look around. do i wanted to be an episcopalian? i do want to be a baptist? i do want to go and be a catholic? we pick the church. if the government were to say hey you know what we will put that up roman catholickening prochedz providence, rhode island, then they would be right. >> it's about more than that this is about a desire on the part of not just the atheists of america. this is a very powerful grouch elites who are very uncomfortable and very hostile to conservative christianity. it's mostly that conservative christians. m >> bill: saw that when he conflated the thing to illegal immigration and gay marriage. he exposed himself on that. >> it's marriage and abortion those two issues are really at

the core of the hostility. the push back about what started in the 60's as free love generation to everything else that followed and every debate we have had. contraceptive debate. government mandated abortions down the road it all goes back to that world view. they don't like the conservative christian world view they seek to use the government to suppress it. >> bill: directly ahead, dennis miller says traditional america has vanished. vaporized by the presidential vote. but is that true? my talking points memo is next. so why treat it like it's a little cold? there's something that works differently than over-the-counter remedies. prescription tamiflu attacks the flu virus at its source. so don't wait. call your doctor right away. tamiflu is prescription medicine for treating the flu in adults and children one year and older whose flu symptoms started within the last two days.

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>> bill: is traditional america gone for good good? that is the subject of this evening's talking points memo. my pal dennis miller believes traditional america has been vaporized that it is gone for good. >> do i think it will ever go back to my lifetime in the other way no, i don't. i think this is it. do i think it's the mercury saw from 18 to 58? no, i don't. is that the end of the world? , no it's not like i was in the shower this morning and find a lump in my armpit. that's always my fall back position. i have got a great life. but i'm just saying it is not the mercury have grown comfortable with. >> bill: i have given miller's election take a lot of thought. and i disagree with him. i believe traditional america can come back but it will take

a very special person to make that happen. let's look at what happened. president obama received about 62 million votes. 11% less than he got in 2008. so he is slipping in popularity. mitt romney endedo up with 3.3 million fewer votes than thett president, close, but romney got 2% fewer votes than johnne mccain garnered in 2008. by any poor performance. mccain was running right into a recession. it was more about romney's failure to build on mccain's vote than obama doing anything. are stronger candidate would have defeated theb president. mr. obama won the woman vote. blacks and asians. the hispanic vote that really nailed romney. 71% of latinos voted for the president. that was a difference in florida, virginia, colorado, and nevada. other states were impacted as well.ol romney took white males and independents by significant margins. when you punch it all up together. when you bunch it up, it was anhe entitlement vote this year.

american families earning less than $30,000 a year broke big for the president. 62% to 35. so it's clear that left wing ideology did not win the day for barack obama. big spending on federal programs did. that's the key. because many in the media would have us believe liberal ideology was confirmedve by this election. it was not.ol however, however. secularism is certainly eroding traditional power. no question about it. those americans who attend religious services at least once a week voted for romney 59 to 39. the problem is church-going is is on the decline in this country. here is an example. despite the president's controversial insistence that some catholic entities provide birth control and after pills, catholics supported obama 50% to 48%. down from 2008 but still a surprise to some. but only only about 30% of american catholics now attend weekly mass. so you can see the impact of

creeping secularism on the religious vote. on paper, the stats look hopeless for traditional americans. but they can be reversed. however, it will take a very special politician to do that. by the way, mitt romney didn't even try to marginalize secularism. he basically ignored it it a mistake because president obama is the poster guy for the secular progressive movement. the key get question going forward is the s.p. movement good for americans no matter what their ethnicity. the answer is no. three vivid examples. secular progressives champion a do-your-own thing philosophy. no judgments about personal behavior are allowed in that arena. the public school system has adopted that philosophy. that's now wreaking havoc on american society. in 2010, about 41% of american babies were born out of wedlock. that's up 8 percentage points since 2000. and up an astounding 23

percentage points since 1980. babies born to unmarried women drive poverty every study shows that and american minority groups are the most affected. inin 2010, 73% of black babies were born, outside of marriage. 53 of hispanic babies were. the number was 29% for white babies. so the cycle continues. minorities are more affected by poverty because the traditional family unit has broken down in those precincts. and rather than trying to reverse that, secular progressives want more entitlement spending. nothing about changing libertine, attitudes. on the abortion front, same thing, rather than trying to trying to discourage taking the lives of millions of fetuses, the s.p.'s have created a mythical war on women. screaming that so-called reproductive rights are under assault. the abortion zealots wants the procedure on demand.

no matter how late term. are stridently opposed to even counseling before this life-ending procedure is undertaken. abortion is settled law in the u.s.a. but it should be discouraged because human d.n.a.ke is present uponed conception. thus, the situation becomes a human rights issue. ask yourself this question. should america be a country where potential human life, undeniable fact after conception is terminated for convenience, for convenience? is that the kind of country we want? and the federal government is going to demand that citizens who oppose abortion pay for it? what sayen you planned parenthood? finally, twowh states, washington and colorado, voted to legalize pot. the grim stats on this idiocy. since 2008, teenage pot use up 48%. heavy use for teens has increased 80%. states that have lenient

drivingmarijuana laws those stats. why? because legalizing pot sentsdz a message that it's fine to use it. and getting the drug at the corner pot f shop makes it readily available to anyone. ask any drug counselor, and he or she will tell you once a child is introduced to intoxication can't that child's life changes for the worse. some may not become substance-involved but millions will. do we want to encourage that? the s.p.'s. they don't care about addiction. they don't want limitations on so-called private behavior. no judgments. want to smoke drugs? fine. want to abort aat fetus? we'll drive you to the clinic. want to have a kid when you are 16? no problem at all. we'll support you. if mitt romney spelled that out, what the secular progressive movementmn is really all about? strong vivid terms and how president obama enables that, romney would not have lost 71%

of the hispanic vote, i can tell you. i believe the majority of americans can be persuaded. but the far left is a outfit.s bent on destroying traditional america and replacing it with a social free fire zone that drives dependency and poverty. we the people need to be confronted with the reality of our situation. but so many of our politicians are cowardly that the truth is rarely heard. well, tonight you heard it. and maybe four years from now, what's really at stake in america will finally be heard loud and clear. that's the memo. next on the run down, juan and mary katharine will react and the factor will be right back. ♪

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upper belly pain, dark urine or yellowing of skin or eyes. these could be signs of rare but serious side effects. ♪ is your cholesterol at goal? talk to youdoctor about crestor. [ femalannouncer ] if you can't afford your medication, astrazeneca may be able to help. >> with hotwire's low prices, i can afford to visit chicago for my first big race and l.a. for my best friend's wedding. because when hotels have unsold rooms, they use hotwire so i got my hotels for half-price! >> men: ♪ h-o-t-w-i-r-e ♪ hotwire.com impact segment tonight. secular politics are damaging the nation and that folk also wise up eventually. joining us now from austin,

texas, marianne catherine ham and juan williams both are fox news analysts. am i right here? wrong here where am i. >> you are a little off target. >> i'm off target. >> just a little bit. some of the thingshi i resonate with. there are lots of older americans right now who say this is not the mercury grew up in. nobody is speaking i english. i go to the 7/11. who are these people and they get angry and they say america has changed. you can't demonize the new folks in america and make them out to be america's problem just because and say well, you know, these folks didn't vote for romney. in fact, people said romney shares their values. this is across the board. but they said obama in a cares about people like me. and what you have got to do here. >> bill: i don't think 71% of hispanics are secular progressives. would you agree with that? >> no. that'ss, what i was coming to you next to say to you when you look at catholics, hispanics strongly catholics.

>> romney couldn't put it in vivid terms so they would respond to that. >> no. >> bill: all right, mary katharine you say. >> i think you are on target on a bunch of this. we have i reached a turning point of sorts. that doesn't mean that folks who believe whatd romney believes or believe in general to the right of center as juan was pointing out many people still do that that can't result in electoral victory in the future. i think you are correct that it takes a special person. i think it took a special person in barack obama to bring theta left to where it is right now. i'm frankly surprised it got here. and it will takeba somebody who really connects with people who is charismatic and smart and takes this message to people in a smart way where you are not demonizing anybody and i reject the notion that i or i or bill or anyone else is doing that in explicit ways. you have to cross these cultural barriers and talk in a way that's smart and reach folks. that was part of what was missing. >> bill: talk in a way that challenges them. i mean, look, as you said most

hispanic americans are catholic. they are family oriented. >> strongly. >> bill: very veryon tradition in hispanic precincts, family, family, family. rejected all of that. >> no, no. why do you think that? >> bill: because if you looked at the democratic convention and you saw all the abortion zealots and allk the zealot tri up there and the dependency and the big government programs, you couldn't possibly say this is the pro-family party, the democrats. >> of course you could. you saw the mayor san antonio his mother and his wife. >> bill: if you want to parade kids you can't beat romney he has 42 of them. [ laughter ] >> bill: i'm saying the message that was put forth by planned parenthood now and that real was an antifamily message. >> that's not true. >> wait a minute. wait a minute. >> bill: abortion on demand for an wy reason at any time. >> they all say that. >> bill: yes they did. >> what they said was you

shouldn't get into things like requiring invasive procedures before a woman is allowed to have anes abortion. >> bill: evasive? >> in this election more thanan half of americans said abortions should be legal. then let's come to something like marijuana. a minute ago you said you let that. what do you say about alcohol, bill o'reilly? >> bill: i don't make those comparisons. >> bill, you don't even drink. >> bill: i don't make thosel, comparisons because they are not constructive. >> have you gone to college and seen these frat boys out there having a big beer bash? >> bill: do you know what juan is doing now. word of the day do you know what he is doing? is he pettifogging the marijuana issue. >> there we go and i'm a lawyer. >> bill: introducing an alcohol discussion that has nothing to do. exactly what you did. you petty fogged the issue by introducing alcohol when the stats are 40% of teens are up in marijuana and 80% in heavy use. >> what? >> heavy marijuana use. >> what about alcohol will? >> bill: no, but you h ignore those stats by introducing another topic, alcohol.

>> bill: that's -- you and calvin coolidgeis back to 1930, what you did was pettifogging. you avoided the fact by introducing something else that we're not talking about. mary katharine,in okay. have you had yours. >> my drink. >> let me take us back to the family stuff real quickly. first of all, conservatives need to understand this is something that i have talked about for a while that we can't waitt for people to get married to become conservative. we can't waiteo for people because they are church go everies tove be conservative. it takes a little bit more convincing than it used to because people's lifestyles used to drive them towards this philosophy. we have to do more convincing. but here is the other thing. i think you are right, bill, there is so many unintended consequences of this giant clumsy and corrupt federal government to solve every problem that often you end up with single motherhood and parenthoodft driving 40% of income inequality. which is not what the result of the left wants but it is

what it ends up t with. you start to try solving that with more subsidies. it's not a a healthy way to solve that problem. not a flexible smart way to solve that problem. conservatives have a different method where you can take things to the states where even in states like poll policy which i may differ with you on can become experiment mental democracy. people keep voting for every bigger federal government have you none of those p opportunities and you lose the opportunity to help people. >> bill: governmental i just want to say to you and to mary catherine that you can't say to these people like you're cranky and angry over the election. au guys are a bunch of lay abouts, you are having children out of wedlock. you are smoking pot. >> who said that? >> let me tell you something, people share values, a family and love of country. >> said the exact opposite of those things. >> bill: from what i took away from juan was you can still be stoned and lovero your country. very good, juan, thank you. >> bill: coming up, america needs to wise up and lou dobbs and i will tell you why. right back with it.

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>> >> the talking points memo he this evening. all of us, all of us needs to wise up and fast. you may have heard the story of new york city police officer lawrence deprimo who spent $100 of his own money to give a homeless man some boots. that man was lying in the street when the officer spotted him. >> it was extremely cold that night. and you know you see this gentleman, i tried to offer him to buy him a pair of socks. and he said no, officer, but god bless you. thank you for asking. and when i seen something like that, you know, here it is, it'swh freezing cold out and he has the heart to say god bless me. i just knew i had to help him. >> bill: obviously officer deprimo is the patriot. here is the sad truth. mr. hillman is not homeless. he has an apartment. paid for by you and me. is he on government

assistance. he has enough resources to live his life in a dignified manner. yet, mr. hillman doesn't do that he prefers the street. and the boots officer deprimo gave him have disappeared. now, i'm not judging hillman. most cases like his involve substance abuse or mental illness. however, we must be honest. the government cannot provide a decent life for hillman. no matter how much money it spends. we're already giving the guy tens of thousands of dollars a year and it is doing nothing. there are millions of americans like jeffrey hillman and we all need to understand thater some people simply will not, will not save themselves. this translates into an issue that effects all of us. right now,ue an estimated 66 million americans are receiving food stamps and/or medicaid.me in addition, there are 21 million folks working for the government. that means that 87 million

people in america are being subsidized by we the tax pairs. but there are only 109 million americans workerring in the private sector, doing the math, it's impossible for 109 million workers to support 87 million people. it can't be done. no matter how much you tax the workers. yet, the obama administration and the democratic party continue to put forth that higher taxation will bring the massive government debt under control. perhaps the only democrat telling the truth will this is our old pal howard dean the uber liberal former governor of vermont. the truth is everyone needs to pay more taxes not just the rich. that's a good start. we are not going to get out of this deficit problem unless we raise taxes across the board. >> bill: governor dean sympathizes with the socialist philosophy and that's where the country is heading. taking from those that are

productive and giving to those who are struggling or who are working for the massive government apparatus. during this christmas season i think we all should emulate officer did he prim mow. we should all help those in need that help may be futile. if the federal government doesn't wise up and impose some discipline on the incredible entitlement spending, america's economy will eventually collapse. president obama needs to invite jeffrey hillman to the white house. he needs to talk to the man with no shoes. he needs to see what is exact happening in this country got to get real about government spending. this is incredible the pennsylvania department of public healthcare says that a single mother with two children is better off taking a job that pays $29,000 a year

than a job that pays $69,000 a year. why? because of entitlements. joining us from our fox anchor stewio lou dobbs. explain this for us, please. we have got to give great credit to the public pennsylvania. i know then federal government as do you would listen. think abouigt these benefits being receiveded by this woman. 25,000 and take home salary of $57,000, you add to that go through whether it's child care or whether it is transportation. two children in pennsylvania. foot stamps amounts to a subsidy of $6,300 a year to that family of three. medicare and child health insurance. $16,500 a year.

section 8 subsidized, low income rent. another 4300. s earned income tax credits. modestly $5,000. they could rismoe significantly beyond that but at any rate. they would total so much money, combined with the -- national school lunch m program, needy family assistance programs, we're talking about more take home pay, disposable income for that woman with her two children on public assistance than a woman with two children earning $57,000 a year. it's extraordinary. >> all right. and if she were earning 69 wouldn't get any of that. >> right. >> bill: the pennsylvania authorities say the system is set up now to reward people not making any money. if you try to bring yourself up and raise yourself up in salary, you are actually going to have a lower standard of living because you lose some

of these benefits. that's the game right now. >> it's the game. it is also the challenge because they are trying to avoid that collision. because it doesn't matter, in thison one instance what we are talking about here, if you are a socialist or a capitalist, we are talking about government subsidizing and incentivizing behavior. >> bill: real quick, did i pick on this jeffrey hillman guy, the homeless guy? this guy has his apartment paid for, he has god medicaid and food stamps. has he got it all. am i being unfair to him. >> not at all. our president who spent much of his life as a community organizer is more interested in expanding government than he is in actually organizing and supporting communities which are really the answer to mr. hillman's tragedy. >> bill: solving these kinds of problems. >> absolutely. >> bill: coming up how the new entitlement culture helped decide the election. that's moments away.

>> bret: this is a fox news alert. i'm bret baier live in washington as we take a live look at the house floor. this is congressman david drier, is he the chairman of the house rules committee. the house is getting ready to debate what's called the rule, getting ready to put forward the senate bill dealing with the fiscal cliff. there was a back and forth all day today about whether conservatives in the house would let that go forward. but it looks like this will happen. let's listen in to congressman drier. >> similarly, this notion of approaching a deadline and trying to deal with an issue is something that happens in this institution and this is another example where that's the case. the issues that we are attempting to address tonight with this vote are as important as they are challenging the range of ideas proposed as the solutions are as desperate as are numerous. this body like our nation has

been deeply divided over how to proceed. under these circumstances, an agreement has been extraordinarily allusive. we all know that the bill before us is not the grand bargain that i and i think most of my colleagues had hoped that we would have been able to achieve. what we are doing this evening, mr. speaker is, a very essential bridge to what i hope will be a comprehensive long-term solution bring us back from the edge of the fiscal cliff. i know just hours ago we did technically go over that bridge. we are working hard to pull ourselves back from that cliff we went over the cliff and we are pulling ourselves back. and we are ensuring the taxes are not increased on 99% of

americans. i know i'm not alone when i say i had high hopes of package of sweeption tax reform and something that i think has to be acknowledged and i'm very saddened that it's not included in here but entitlement reform. we all know and you know very well, mr. speaker, that entitlement reform is the only way that we're going to successfully get our arms around this marv 16, now i guess it's $16.25 trillion national debt that is there. as willie sutton said he robbed banks because that's where the money is we know that entitlement reform is going to be essential if he would are going to be able to get our fiscal house in order. i'm saddened that this is not part of it. passed out of the house of representatives. meaningful reform in a number of these areas. it's truly unfortunate that

our friends in the other body have not engaged thus far in these efforts. but mr. speaker be, the legislation which is before us which again as we all know passed 2:00 this morning earlier today in the senate will avert the economic crisis and set the stage for the very hard work that must be done in the coming weeks. now mr. speaker pro tem you and i won't be here for that work to take place. i know you share my view that our colleagues have a unique opportunity as the 113th congress begins its work on noon on thursday to take on this challenge. believe have a unique opportunity because of the fact that there is divided government. because we have the president of one party who regularly talks about the need for this

kind of reform and i congratulate him for that. the people's house. the house of constitution has the responsibility of dealing with tax issues this body the other party, mr. speaker. in light of that, i think that since there is a consensus on the need to tackle these issues, it can be done in a bipartisan way. i hope very much i hope very much happen. the way for us to take that first step is to pass that rule bipartisan support. i appreciate the kind words of the ranking members. slaughter upstairs and supporting this effort that we have. and then at the end of the day, once we go into the debate on senate amendment which is what this rule will

call for us to do which will again have strong bipartisan support for that measure. so with that mr. speaker at this juncture i will reserve the balance of my time. >> that's congressman david dreier. he is the chairman of the house rules committee. is he retiring. member of congress from california. you can't consider a bill until you have a rule in the house of representatives. it's essential lie like the parameters for a debate like batting practice before the actual game. the logistics, the parliamentary procedure of the house floor. that's what they are doing right now. talking about this rule and then they will deal with the bill. the actual bill that came over from the senate. early this morning passed overwhelmingly in the senate to deal with the fiscal cliff. joining me on capitol hill our chief congressional correspondent mike. this has been a tense back and forth as republicans have

considered all day how to move this forward. they spent a lot of hours behind closed doors trying to figure out the way forward. what we heard from members is essentially they did not like the idea that this senate bill doesn't cut spending. a lot of them feel like they were elected and brought to washington to cut spending, to get a control on all the government spenting that goes on. and bottom line is is that this bill that the senate hammered out. senate republican leader mitch mcconnell ham medicine out with the vice president of the united states has $626 billion in new tax revenue but only some $15 billion in spending cuts. and so essentially $41 of new taxes for every dollar of spending cut. and so a lot of the republicans were telling their leaders that they don't like this bill. they think it's a bad deal. they should tack on an amendment spending cuts attached. the bottom line was time is running out. we are less than 48 hours from a new congress being sworn in.

they had the clock ticking. they might just say okay fine, it's the house republicans fault for the largest tax increase in america in history. house republican leadership feels like they had a very difficult hand that he they were dealt. this deal was passed in the middle of the night by a very big bipartisan vote. so with their backs against the wall with the clock ticking and concerned about how the markets might react tomorrow, they are going forward with this bill because they could not get consensus on one amendment that would cut spending, bret? >> if they had decided to go forward with amending it, mike it really would have thrown a wrench into the whole system as far as sending the bill back to the senate. a senate that went home for the night already and is not coming back until tomorrow. >> absolutely. democratic senate leadership aides were essentially sailing that the house republicans had been kept abreast of the

negotiations. they were aware of what was going on. it was not a surprise of what was coming. if they try to toy with this bill that passed overwhelmingly with the bipartisan vote in the senate, that they were not going to take it up and that they would pin the blame on the house republicans and so with that in mind it may be better to cut taxes for an overwhelming majority of the american public than will allow a massive tax increase on everybody. at least that seems to be the calculation at this late hour. >> okay. mike emanuel watching things up on the hill. we will head back for breaking details as there will be many likely in the next few minutes as they get ready to consider this voted on the senate bill. let's turn now to chief white house correspondent ed henry at the white house. the white house, the president, anxiously watching this all day, ed. actively democrats on the bill. behind closed doors just as he did with senate democrats. certainly you would have to say his efforts last night

were successful. wildly successful because bus it was overwhelming vote in the wee hours of the morning of new year's day to pass it among democrats and republicans. he was lobbying democrats mostly. and let's not forget there were several liberal democrats in tom harkin and others. he ended up voting against it but there were many other liberal democrats who said they were uncertain. they thought it was not going far enough in terms of tax cuts for the middle class. and so they lived to fight another day. in the end joe biden brought them along. there is an important point to make about the fact that this whole exercise started as an effort in deficit reduction. as you know, bret, it ends tonight in an exercise in which if this passes through the house and is signed into law by the president. this will add nearly $4 trillion in new debt over the next 10 years. that is not according to me. that is not according to either party. that is according to the nonpartisan congressional

budget office. and so this started out as a way to try to reign in debt. and, instead. it's going to add a lot to the debt. that's why there is a lot of conservative frustration about it. that's why speaker boehner has had such a hard time today, he basically let a lot of the conservatives in his caucuses vent for several hours. it may have been a short strategy in the short-term because it allows conservatives to express their anger behind closed doors and come out oto the cameras and say they really don't like this deal but at the end of the day it's probably the best thing they can do right now to avoid the possibility of the nation slipping into another recession number one and number two, it locks in tax cuts not for everybody but for a big, big share of this country and so now both parties can claim that they are extending tax cuts for a lot of people that's a better outcome for either party than the republicans looking tonight like they're blocking this deal and then going home and having to answer for the fact that we're not only maybe crashing the markets, slipping into recession but, also,

stopping tax cuts for a lot of people. it's not going to be a perfect deal but it's one that in the end it appears and we will see what the vote is. it appears like folks are coming in -- >> bret: a lot of people saying appears that republics are going to vote in greater numbers. during the day it appears those votes were not shoring up. we had a number of conference meetings up on the hill. quick live i want to ask you do we expect if this does pass to hear from the president tonight? >> we do expect to hear from the president. the question is whether we will will see him. will we see him on camera or will it just be a paper statement? if this were to come down tonight, i would say it's a guarantee based on our conversation with some of his aids that he will be out here tonight on camera beating up on the house of representatives as we saw a little bit yesterday which may have back fired on them yesterday, a little bit of a pep rally here. he would be going after the house and trying to communicate directly with the measure people saying put pressure on them. we are running out of time.

we have got pass this deal. if it does pass tonight, it might just be a paper statement. we are expecting he is going to get on air force one very quickly. head back to for the rest of the vacation with his family. if he wins tonight, essentially he may just put out a paper statement and move on or he might come on cam and take one last victory lap and move on. >> bret: weful cover it either way. ed, thank you. chad pergram is our senior producer on capitol hill. he has been covering every angle on this from the very beginning. you had the eric cantor saying he does not support this bill. and that sent shock waives, really through the washington. as he was making this public and blunt statement. then they had a series of meetings really behind closed doors to get a path forward here. >> yeah. and it was very significant. some people started to speculate. it was just conjecture that there may be a sism between house speaker john boehner and eric cantor.

they seem to be much more on the same page much more in the past year or so. it was interesting that they walked down to the final conference meeting. eric cantor and john boehner walked down the center steps to the capitol. to the basement of the capitol soldier to soldier symbolic gesture that they were together and on the same page even though they might see this differently. the house speaker often does not vote on basement john boehner was concerned. he had some skepticism about this bill. but his responsibility as the speaker is to lead. and he didn't see too many ways out of this culled sack. he said look if we can get the votes possibly to go through the -- if we can get the votes possibly to amend the bill and send it over to the senate i'm willing to do that. if we can't, we have to take the senate bill. we are running out of time. we just have about 40-some hours left in this congress. we have to finish this by midday on thursday. >> bret: i explained to feex little bit about what we are looking at live on the house floor. congressman david dreier the

chairman of the house rules committee and we're in the process of what's called debating the rule. this is the set-up to getting the bill to the floor. just go through for folks at home very quickly, chad, not in too many of the weeds, how this is going to progress and how this bill could move forward and how quickly or how slow it may go. >> right. we'll just do a high cut here. we won't do this golf course level here. we will keep this pretty high. what happens is almost every piece of legislation has to get a rule. that governs how you handle ton othe house floor. what you are having right now is a predebate and once you agree to the rule they would have to vote, perhaps, they could do that very quickly, then you get to the actual debate on the piece of legislation itself. you can't bring up a bill to the floor in most circumstances. unless you get the rule. because it's kind of like playing baseball each day. one day you might say you have four outs in an inning. one day you have three outs in an inning. one day two balls to get a walk. they create a different set of rules each day on the