The Researchon Adjusting Urban Residents Income Distribution Of Individual Income Tax

China’s economic and social rapid has developed rapidly and the economic level has enhanced unceasingly since 1990s, the residents’ income level also increased significantly. But at the same time, the income gap between rich and poor has become much bigger, and it has become the obstacles in the process of the construction of the harmonious society in our country. The individual income tax, regulating income gap in China, is regarded as the main tax of promoting the common prosperity and much attention has been paid to it. The new revision of the personal income tax came to effective, but the reform is never a jump and the current individual income tax is still not satisfying and the reform needs a long process.This article is divided into five parts. The first part introduces the research background and significance. The second part analyzes the tax related theory on the adjustment of residents’ income distribution, and analyzes the inside and outside factors influencing individual income tax to be effective. In the third part, the current status of resident income distribution in our country is studied from three points and the article focus on the empirical analysis of individual income tax on the adjustment of the utility, using the MT and K index, and calculating the gini coefficient. The process of empirical analysis shows that China’s Individual Income tax does not effectively play its role. In order to solve this problem, the article makes a detailed analysis of the reasons. The fourth part makes a comparative analysis of the foreign advanced experience, focusing on the tax system mode, expense deduction and tax rate design. In the fifth part, the article puts forward some recommendations about how to perfect our country individual income tax, including the combination of perfect tax system design elements and strengthen the high earners collection efforts.