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Democrats Divided on Tax Breaks

House Democrats are still wavering on whether they will hold a vote to preserve Bush-era tax cuts before lawmakers leave Washington later this week for the midterm elections.

And Democrats are further divided over which tax cuts they should renew.

House Speaker Nancy Pelosi (D-CA) and Majority Leader Steny Hoyer (D-MD) want to preserve tax breaks for those who make up to $250,000.

But a group of 47 House Democrats argues that Democrats should extend tax cuts on capital gains and dividends. Rep. John Adler (D-NJ) made the case in a letter penned to Pelosi.

"Raising taxes on capital gains and dividends could discourage individuals and businesses from saving and investing," said Adler in the missive. "We urge you to maintain the current tax rate for both dividend and long-term capital gains taxes."

Republicans are demanding an across-the-board tax reduction.

Democrats won't commit to taking any action on tax cuts. But Hoyer told reporters late Tuesday that a decision on that would be made "soon."

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