Abstract: This paper empirically study the relationship between fiscal policies of income distribution and the resident income gap by putting the fiscal expenditure and tax variables into a unified finance policy framework for income distribution. The empirical results show that, China's fiscal policy of income distribution has stable effect on the income gap, but the adjustment direction and effect are different. For the income gap of residents overall gap and regional income, the fiscal expenditure and tax policies all have the effect, and the adjustment effect of fiscal expenditure policy is better than tax policy. For the income gap between urban and rural residents, the fiscal expenditure policy has played a effect of widening gap due to the tendency of city characteristics of its investment.