Cutting out mortgage interest rate deduction would be beyond retarded. The housing market is still in the toilet. You take away those deductions and many people (like me) wouldn't even consider buying. It just wouldn't make financial sense.
Things I'd do:
1. legalize marijuana - you make money twice here; you stop throwing away all the money that we're spending to eradicate it and you pick up the tax revenue
2. develop exit plans for Irag and Afghanistan ASAP
3. Tax breaks for companies that create jobs. Yes, tax breaks. Getting more Americans working is another one that makes money twice. You get people off of unemployment and you pick up the income tax.
4. Stop the handouts to illegal immigrants.
5. Bump the retirement age. Yeah, it sucks, but Americans are living longer, it only makes sense that we should work longer.