Abstract: Fiscal policy is the foundation and important pillar of national governance.In the solid advancement of the process of common prosperity,public finance should not only promote the enlargement of the “cake” —the economic development,but also pay attention to“dividing the cake well”.By utilizing various policy tools effectively,efforts should be made to narrow regional disparities,urban-rural gaps,and income gaps,and to promote equalization of basic public services.The paper focuses on building a unified national market,promoting the coordinated development of urban agglomerations and metropolitan areas,improving the transfer payment system,advancing coordinated urban-rural development,and other aspects,elucidating the intrinsic logic and practical paths of the role of fiscal and tax policy,analyzing existing constraints,and proposing relevant policy recommendations.

Key words: common prosperity, fiscal and tax policy, tax reform, transfer payments, national unified market