Obama's Budget: Creative Math

Maybe I'm missing something here, but exactly how is Obama's budget going to reduce the budget deficit to anything meaningful?

I've read several stories about his budget proposal and here's the highlights. I've categorized them as Budget Increases, Budget Cuts, and Revenue Additons. Remember these are over 10 years.

The starting point is a budget deficit of $1.2 Trillion.

Budget Increases
$50 Billion for Infrastructure repair
$1 Billion for manufacturing institutes
$?? for preschool programs for low income children (to be paid for by higher tobacco taxes)
$?? Obamacare
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$51 Billion over 10 years

Budget Cuts
$100 Billion from defense
$100 Billion from domestic programs
$400 Billion from Medicare
$200 Billion from Federal Retiree programs and Farm Subsidies
$130 Billion from recalculating the Social Security COLA.
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$830 Billion over 10 years

Revenue Additions (New Taxes)
$580 Billion from Buffett millionaire rule and closing upper 2% tax deductions (BTW, he already got $600B from the wealthy on Dec 31 tax deal. Now another $580B? Really?)
$100 Billion from recalculating Social Security COLA.
$?? Increase in tobacco taxes
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$680 Billion over 10 years

Net effect = $1.459 Trillion difference in reductions/new taxes over 10 years.

That's $146 billion per year in deficit reduction. Now add in the $60 billion per year in new taxes on the wealthy passed on New Years Eve and you have a pool of $205 billion per year to apply to deficit reduction.

BUT....the deficit is already at $1.2 Trillion.

So how is this plan going to bring the budget into balance in 10 years? What am I missing here?