June 7, 2010 09:55 PM EDT
Trying to get to 60 votes, Senate Democrats proposed changes to a House-passed jobs bill Tuesday that would increase aid to cash-strapped states while treading more lightly on new tax rules aimed at private equity interests with clout in the party.
An estimated $24 billion in Medicaid funds — dropped by the House before Memorial Day — would be restored after an outcry from governors and liberals. At the same time, a handful of swing Democrats on the East and West coasts would win concessions to soften House reforms that target wealthy investment-fund partners who now shelter their income at lower rates afforded capital gains.
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