This paper empirically analyzes the effects of tax
structure on econom y, it shows that under China's now economic system
and tax
structure, if the sha re of the category of turnover taxes, the category of income taxes, the category of resource taxes and the category of
property taxes in the tax structure incre ases, the gap between the capital-owner and the labor-owner in the income dist ri bution by the market will be enlarged. However,if the share of the category of taxes for special purposes and the category of behavior taxes increases, that ga p will be closed. In the meantime, increase of the share of the category of inco me taxes, the category of resource taxes and the category of behavior taxes will make the economic scale larger, while increase of the share of the category of property taxes and the category of turnover taxes will make it smaller. Thereby in China's now economy, it is necessary to reform the category of income taxes a nd the category of property taxes from the aspect of the tax structure and the t ax function. Only in the respect of the adjustment of the tax structure, the sha re of the category of income taxes should be increased and the share of the cate gory of property taxes should be decreased.