With the initial expiration of ther 2001/2003 tax cuts set for December 31, 2010, lawmakers acted to prevent the tax cuts from expiring. The 2001/2003 tax cuts were extended for all taxpayers for two years, beyond the President's initial proposal of extending them only for those earning under $200,000 ($250,000 for couples).

Included in the tax cut deal were several additional tax cuts and extensions: a 13-month extension in unemployment insurance, a temporary two percentage point cut in the Social Security payroll tax on the employee side (bringing the rate down from 6.2 to 4.2 percent), a two-year AMT patch, temporary full business expensing for new equipment, an extension of ARRA changes to refundable tax credits, and several other tax incentives.

The total deficit impact of the bill was estimated to be $858 over the coming decade, larger than the $821 billion stimulus package passed in early 2009.