On September 19,. 2011, President Obama presented his detailed plan to reduce the federal deficit, and to pay for his jobs creation bill, The American Jobs Act.

Per the President, his deficit reduction plan will achieve "approximately $4.4 trillion in deficit reduction" and pay for "the cost of the American Jobs Act," which is about $447 billion. "This plan cuts $2 in spending for every dollar in new revenues," the President added.

In summary, the President's plan reduces the U.S. deficit with the following federal spending cuts and tax increases, as follows:

• Spending cuts in the Budget Control Act (i.e. debt ceiling agreement) - $1.2 trillion
• Spending cuts to "mandatory" programs as Medicare and Medicaid - $580 billion
• Drawdown of U.S troops in Afghanistan and Iraq - $1.1 trillion
• Income tax reform, largely via expiration of Bush tax cuts - $1.5 trillion
• Interest savings from paydown of federal debt - $430 billion
• Total = $4.81 trillion in planned savings for deficit reduction

The Politics: Most portions of President Obama's deficit reduction plan are quite attractive to Democrats, especially progressives who opposed Bush tax cuts for the wealthiest Americans and who support drawdown of U.S. troops in Afghanistan and total withdrawal of U.S. troops from Iraq.
Many liberals object to Medicare, Medicaid and health care benefit cuts included in Obama's deficit reduction plan.

Per recent polling, middle-class and working class Americans will strongly support major portions of the President deficit reduction plan, especially rollback of Bush tax cuts, withdrawal of U.S.

troops in the Middle East, and income tax reform that includes additional taxation of the wealthy.

This plan, and Obama's fighting for it, could inspire and energize Democrats and middle-class Americans to vote for Obama in 2012. However, this plan stands almost no possibility of being passed into law by Congressional Republicans.

President Obama's Deficit Reduction Plan: President Obama's spending cuts of "mandatory" programs and income tax reform increases are briefly described:

• Spending cuts to "mandatory" programs
  
• "$248 billion in savings from Medicare" mainly from "from reducing overpayments."
• $72 billion in "Other health and Medicaid savings," some which are duplicates of coverage under Obama's health care reform bill
• $33 billion in spending cuts from agriculture subsidies and programs
• $42.5 billion in spending cuts to Federal employee benefit programs, including retired military personnel
• $92.2 billion in cuts due to "restructuring government operations"
• 77.6 billion in cuts due to "reducing (federal) waste and abuse"

• Comprehensive income tax reform
  
• $866 billion by allowing Bush tax cuts for the wealthiest Americans to expire in 2012
• $410 billion by capping deductions taken by Americans more than $250,000 annually
• $300 billion by limiting and closing certain "loopholes" and "special interest tax breaks" such as those granted to the oil and gas industry.

In setting forth his tax reform criteria, resident Obama beseeched, "... Middle-class families shouldn’t pay higher taxes than millionaires and billionaires. That’s pretty straightforward. It’s hard to argue against that. Warren Buffett’s secretary shouldn’t pay a higher tax rate than Warren Buffett. There is no justification for it."
Source - White House website