With regard to current income distribution of China, there are many problems such as competitive mechanism unbalance in initial distribution field, out of control of regulatory ways in redistribution field and low management efficiency in taxation distribution field. Fair basis of distribution of taxes in initial distribution should be established because it is not effective in realization of fair distribution and because of the use of neutral principle. The fair basis in redistribution should be established. Taxation adjustment system should be set up in redistribution to standardize taxation distribution mechanism and strengthen taxation adjustment function. To overcome low efficiency in taxes distribution field, we should consolidate taxation management and set up individual income monitoring system in the whole scope of society.