Abstract: In this paper we establish a simple dynamic general equilibrium model to analyze the impact of macro tax burden and taxation structure on residents’ consumption. The results of two step first difference GMM method with empirical test show that, compared with the effect of the tax structure and tax burden level on consumption, the effects of current level of tax burden on residents’ consumption is greater. Therefore, by raising the proportion of direct taxation to promote consumption, we should reduce indirect tax revenue to reduce the tax burden level of the residents, and achieve the goal by the reduction of indirect tax. One step closer we use Arnold research method indicate, to reduce the indirect tax as value added tax and business tax to cut down the indirect tax revenue, reduce the tax burden level of residents. And gradually increase the proportion of direct income, can consider to resume the collection of income tax case is achieved by increasing the personal income tax and property tax.

Key words: residents&rsquo, consumption