Unified tax rate in China boosts social welfare and national income.
The article examines whether the 25% unified tax rate for enterprises in China is optimal. Using a computable general equilibrium model and 2007 national data, the study determines the best tax rate for different types of manufacturing enterprises. The research compares social welfare, national income, fiscal revenues, and employment changes under different tax rate scenarios. The findings suggest an optimal unified tax rate that can improve economic outcomes for various sectors in China.