Since November of 1999 when China began to collect interest tax from bank deposit,all kinds of changes are focused by people about interest tax.So far,macro-economy environment chan- ges a lot and interest tax becomes a hot topic again.Especially,in recent two years,many representa- tives of People's Conference,members of Political Consultation Committee,and economic experts and scholars have serious debate on interest tax.This paper analyzes the positive and negative effect of in- terest tax,reveals that China's interest tax has negative effect,emphasizes that Matthew Effect is en- larged when China collects interest tax and carefully gives suggestions for abolishing interest tax.