My solution would be 300-400 billion in new taxes, 400 billion in military spending reductions, 275 billion in discretionary spending cuts, 150 billion in welfare cuts, and 75 billion in the normalization of medicare.
1.2 to 1.3 trillion/year in budget savings. I'd would increase taxes, cut discretionary spending, and balance medicare immediately. I would balance the military spending reductions and welfare cuts over time.
Plan for eliminating the national debt in 10-20 years:
Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a