Abstract: In this article, eight kinds of consuming expenditure of urban residents who have different incomes in China are estimated by micro method that taking advantage of ELES model and cross section data, and price elasticities of consumers’ demand are calculated. Then, elasticities theories are used to building framework of commodity tax and tax shifting. Taking advantage of price elasticities, the fact is analyzed how residents share the amount of taxes, including value-added tax, excise tax and business tax when they expense for their commodities. And the range of commodity tax shifting is also estimated. Some conclusions include that commodity tax is not regressive, tax is neutral, tax burden is different from their kinds of goods and services consumption for different income groups, and residents’ tax burden is tightly related to levying scale and tax rate of commodity tax. As a result, policies and suggestions are given in the article, including that proportion of commodity tax should be decreasing gradually, business tax should be substituted further by value-added tax, excise tax function should be improved, and commodity tax should be excludable from prices rather than includable with prices, and so on.

Key words: Residents&rsquo, Consumption