Reuters news service has pulled a story claiming that President Barack Obama's budget would raise taxes on the middle class starting this year.


The story made waves in conservative media circles after it was posted online on Monday afternoon, with the Drudge Report linking to it under the headline "Backdoor taxes to hit middle class."

But, as TalkingPointsMemo reports, the news service pulled the story after it was contacted by White House officials who pointed out the article's claim Obama's budget allowed Bush-era middle-class tax cuts to expire was incorrect.

In an "advisory," Reuters said the story has been "withdrawn" and "there will be no substitute story."

The story was reportedly pulled offline around 8 pm Monday, but a version of the story on Yahoo!'s Canadian Web site was still available Tuesday afternoon.

The story stated:

In the 2010 budget tabled by President Barack Obama on Monday, the White House wants to let billions of dollars in tax breaks expire by the end of the year -- effectively a tax hike by stealth.

While the administration is focusing its proposal on eliminating tax breaks for individuals who earn $250,000 a year or more, middle-class families will face a slew of these backdoor increases.