Abstract: With the growth of tax revenue and the gradual expansion of the gap between the rich and the poor in China, the impact of the overall tax burden on income distribution has aroused theoretical research attention. In this paper, the input-output model with VAT deduction mechanism is used to calculate the indirect tax burden, and combined with the direct tax burden, the impact of the overall tax burden on the income distribution of urban and rural residents and its dynamic changes are analyzed.The results show that the regression of VAT is significantly higher than that of business tax. Therefore, compared with business tax, the mode of VAT will lead to the widening gap between the rich and the poor.China′s overall tax system is regressive, and the total tax(indirect tax and direct tax) as a whole aggravates the inequality of social income, and the degree of inequality after tax increases year by year. Compared with cities, indirect tax will aggravate the gap between the rich and the poor in rural areas where the overall income level is low. Although tax in rural areas still inevitably has the characteristic of aggravating inequality in income distribution, this characteristic has been alleviated over time.

Key words: input-output analysis, tax burden, income distribution, VAT