Research On The Effects Of The Income Distribution Of Tax Structure

China’s economic development has made great achievements after30years of reform and opening up, the income level of residents are constantly improving. The total GDP growth from364.52billion yuan to201251.62821trillion yuan, and the average annual growth rate was9.8%. But along with the continued high growth of the total economy, economic and social issues also continue to appear. The income distribution imbalances is one of the most prominent problem.Generally, the studies of the income distribution have two levels, one is element income distribution, also known as functional income distribution, which refers to the distribution of income between the factors of production of capital, labor and land, etc. The other one is income distribution, also known as the scale of the income distribution, refers to the distribution of income among individual residents. Income distribution imbalances are mainly reflected in two aspects. From the perspective of residents in the distribution of income, the income gap between residents was gradually expanding. From the perspective of factor income distribution, the share of labor become declining since1995. It fell from51.121%to44.61%in ten years, while the share of capital income increased by4.18%. In addition, the labor income is the main part of the household sector revenue. So the decline of labor income also makes the household sector income share of GDP has a long-term downward trend, resulting in an imbalance of income distribution sector.In order to narrow the income gap, to ensure social harmony and stability, and promote sustained, stable development, the government introduced a series of policies and measures to ensure the basic living needs of low-income groups can be protected. Theoretically, in a number of policy tools to adjust income distribution gap, the tax structure have a very important role.In this paper, the first part is distribution of the country’s income classification, and the status of of China’s income distribution. The second part is the analysis of tax structure theory.In the third part, clarifying the impact of tax structure on income distribution mechanism. The fourth part is empirical study. The last part proposed some advices of optimizing tax structure.