The latest from the Hill… The Senate continued its work on highway funding yesterday: It blocked Senator Ted Cruz’s effort to tie the bill to the Iran deal; approved reauthorization of the Export-Import Bank; and defeated a symbolic Affordable Care Act repeal amendment. The House and Senate both hope to pay for the road bill with stricter tax compliance. But giving the IRS more to do would be difficult, especially since Congress has been slashing the agency’s enforcement budget. Candidate Clinton and capital gains: A complicated waiting game. Hillary Clinton would raise taxes on the sale of assets held for fewer than six years. She says her sliding rate structure would  encourage firms to think long-term, but critics have their doubts, and worry that the plan would add complexity to the tax code. In Washington State, competing plans for a carbon tax, soon. Initiative 732 would impose a new tax on carbon in gasoline, natural gas, and other fossil fuels. It would raise about $1.7 billion a year and the average family would pay about $300 more in higher gas and energy prices. The state would partially offset that tax hike  with a 1 percentage point cut in the sales tax. The Alliance for Jobs and Clean Energy says voters would reject it and that communities of color would be disproportionately affected. The group says it will propose an alternative for 2016. In the United Kingdom, a crackdown on tax-evading online businesses. The government plans to target businesses that didn’t register for tax and individuals who don’t declare money they earn online. The UK says the “hidden” online economy could yield £5.9bn in tax revenues. Internet business such as Airbnb and eBay could be under greater scrutiny. Interested in subscribing to the Daily Deduction, the Urban-Brookings Tax Policy Center summary of the day’s tax news? Sign-up here to get the Daily Deduction delivered to your inbox every morning. If you’d like to tell us about a new research paper or have any comments about our feature, write us at dailydeduction “at” taxpolicycenter “dot” org.