Abstract: To verify the nonlinear effects that fiscal policies exert on the level of resident consumption, this paper inspects the changes of the effect that Chinese financial policy influence the level of resident consumption when the third-party external factor (the income gap between urban and rural areas) differentiates. The conclusion of the panel threshold econometric model show that in the piecewise function of fiscal policies and the level of resident consumption, which is constructed on the base of the income gap threshold as an external variable, the optimal interval of the income gap absolute value with regard of tax burdens and the financial expenditure scale could promote the level of resident consumption is 4015 to 7016 RMB and 7912 to 10323 RMB respectively. Similarly, the optimal interval of the income gap relative value with regard of tax construction and the financial expenditure structure could boost the level of resident consumption is 0.126 to 0.171 and 0.127 to 0.172 respectively. Therefore, we should dialectically look upon the effect that fiscal policies exert on the level of resident consumption. That is, fiscal policies would generate neither absolute positive influence nor absolute negative influence on the level of resident consumption. The influence depends more on the effects of external factors. The key point to promote the level of resident consumption in China is the reasonable design and implementation of financial and tax policies.