This monthly tax roundup series reviews some of the major stories making headlines in tax policy over the past month, with brief analysis and links attached.

LEE–RUBIO TAX PLAN UNVEILED: March 4 saw the release of the Economic Growth and Family Fairness Tax Reform Plan by Senators Marco Rubio (R–FL) and Mike Lee (R–UT). The plan removes or restricts a slew of credits and deductions, consolidates the income bracket structure, lowers corporate rates and moves to a territorial system, expands the child credit, and eliminates capital gains and dividends taxes (among other things). The Lee–Rubio proposal is a step in the right direction for tax reform, especially on the business side:

*Mark your calendars: Senators Rubio and Lee will be coming to the Heritage Foundation’s Allison Auditorium this month on April 15 to discuss their proposal. Click here for more information.

PUSH FOR ONLINE SALES TAX CONTINUES: House Judiciary Committee Chairman Bob Goodlatte (R–VA) released a draft bill requiring sales tax collections by remote vendors based on rates in effect in the seller’s home state. A coalition of groups that badly want to increase taxes on online sales—including the National Governors Association, National Retail Federation, National Conference of State Legislatures, and others—voiced their disapproval. These groups instead advocate for Senator Mike Enzi’s plan (first put forth in the 2013 Marketplace Fairness Act), which enforces the tax based on rates in the buyer’s home state. Either of these bills that would implement an online sales tax would pose a number of problems:

REPATRIATION TAX PROPOSALS SUGGESTED TO GIVE MORE MONEY TO HIGHWAY FUND: Some lawmakers have suggested taxing overseas earnings at a lower rate than under current law, arguing that the incoming revenue from businesses repatriating their foreign income could be used to pay for highway spending. The Highway Trust Fund (HTF), which traditionally collects revenue from the federal fuel tax, will be depleted in July because Congress has insisted on using the funds to spend on things other than highways, such as mass transportation and bike paths. Higher-fuel-efficiency vehicles and Americans driving less have also lowered gas-tax receipts. Nevertheless, a repatriation tax is the wrong approach to filling this gap, as is a gas tax hike. Congress should focus instead on reforming the highway program:

WAYS AND MEANS PAVES THE WAY FOR HOUSE REPEAL OF ESTATE TAX: On March 25, the Ways and Means Committee passed H.R. 1105, the Death Tax Repeal Act, by a party-line vote of 22–10. The bill now moves to the House floor, where the stage is set for the controversial tax to be eliminated. The death of the death tax should be a no-brainer for policymakers:

PUSH FOR DYNAMIC SCORING CONTINUES: In January, the House adopted a rule requiring macroeconomic scoring of major legislation in Congress. On March 27, the Senate followed with a similar push of its own, incorporating Rob Portman’s (R–OH) dynamic scoring amendment in its budget resolution by a vote of 59–47. Dynamic analysis provides a more comprehensive and accurate assessment of tax policy implications by taking into account economic effects. Adopting dynamic scoring should remain a priority for officials: