To some extent the deficit will end up reduced through coming out of the recession. My WAG is that there will be a revenue increase of ~$.3 to $.4 trillion from increased economic activity. Bringing defense and domestic discretionary spending back to 1990s levels would cut spending by another ~$.6 trillion. The remaining ~$.5 trillion would need to be bridged by tax increases/elimination of tax cuts and/or restructuring of our mandatory spending programs.