The current total labor supply is more than the total demand, because the number of college graduates is increasing rapidly, the employment of college graduates is very difficult. Chinese Government attaches great importance to the employment of college graduates, promulgates some preferential tax policies to promote college graduates’ employment directly and indirectly. However, these tax preferential policies are not systematic and normative and they are not enough to promote college graduates’ employment. The government should formulate “Regulations of the People’s Republic of China on Employment of College Graduates” to legalize the preferential tax policy. Meanwhile, the government must enlarge preferential tax policy to promote the employment of college graduates.