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Abstract
Tax reform phase two may include lowering the corporate tax rate, according to President Donald Trump. Republicans are "thinking about bringing the 2% corporate tax rate down to 20," Trump said in a televised interview aired on July 1. The corporate tax rate was lowered from 35% to 2% last December under the Tax Cuts and Jobs Act (TCJA) (P.L. 115-97). Originally, the White House and many congressional Republicans called for an even lower corporate tax rate. Trump originally proposed a 15% corporate tax rate, and earlier drafts of the GOP tax reform bill proposed 20%. However, under the reconciliation process, Senate budget rules limited how much Republicans could cut the corporate tax rate. The next round of tax reform will focus on making permanent the individual tax cuts enacted under the TCJA temporarily through 2025.