Abstract:Chinese national initial income distribution is inclined to the enterprises, the proportion of the wages of the workers to GDP is decreasing year by year, furthermore, capital earnings are higher than working benefit, the income redistribution is inclined to governments, after the adjustment, only the ratio of the revenue of governmental departments is rising, the scale of real governmental revenue is bigger, however, the ratio of inhabitants’ income shows the trend of gradual decrease. China’s macro tax is rising, furthermore, the existence of a lot of revenue outside system makes macro-tax fast rise. Chinese governmental duty prefers to resources allocation, fiscal expenditure has typical characteristics of “emphasizing economic service and general service but ignoring social development and human capital investment. On the one hand, China should deepen income distribution reform, especially optimize the budget of financial revenue and expenditure, consolidate the adjusting role of financial and tax policy in national income distribution, boost the reasonable income distribution of Chinese nationals, on the other hand, China should change governmental duty, reasonably use governmental revenue, optimize expenditure structure, use financial policy to boost income distribution fairness and the maximization of social welfare.