Conservative talk show host Bill O'Reilly said Tuesday night that Republicans must accept "revenue increases" for the government by way of tax hikes, specifically coming out in favor of a 1 percent national sales tax to help fix the U.S. budget.

"That could raise $100 billion a year without hurting the economy," he suggested. "That money could fund Medicare. There are ways to get a deal done."

He added that "the debt ceiling has to be raised and government spending has to be cut dramatically."

This video is from The O'Reilly Factor, broadcast Tuesday, July 12, 2011, as snipped by ThinkProgress.