Abstract: Reflection on the development of tax reform, China has experienced several significant tax reforms, and the role of taxation in economic and social development has continued to increase, but the current proportion of direct tax revenue is still low. As China economic and social development, Chinas tax structure will also undergo a historic shift from indirect taxes to direct taxes. In the next fifteen years, the focus of tax reform will be carried out in the field of direct taxation, especially the gradual improvement of personal income tax and real estate tax, and the gradual introduction of inheritance tax. By increasing the proportion of direct tax continuously, the proportion of middle-income groups will increase significantly, and the gap between the urban and rural areas and the living standards of the residents will significantly narrowed, and then the new goal of socialist modernization-common prosperity for everyone, will be achieved.

Key words: tax system structure, tax reforms, direct tax, indirect tax