How does President Obama propose to reduce the deficit by just over $2 trillion in 10 years?  In a nutshell:

Tax the Rich

• repeal of the Bush-era tax rates for couples making more than $250,000
• place limits on deductions for wealthy filers
• end certain corporate loopholes and subsidies for oil and gas companies
• combined $1.5 trillion in new taxes

Cuts to Benefit Programs

• $248 billion cut from Medicare
• $72 billion cut from Medicaid & other health programs
• $430 billion in savings from lower interest payment on the national debt
• $1 trillion in savings from drawing down military forces from Iraq and Afghanistan

See details here.