For the National People's Congress and Chinese People's Political Consultative Congress this year, Finance Minister Xiao Jie has pointed out that the personal income tax reform program is currently under studied. Researchers at Anbound Think Tank believes that tax reform should be based on regulating and guiding the redistribution of social wealth. For example, the government can modify the law so that the rich pay more taxes, such as real estate tax, inheritance tax, gift tax, capital gains tax and others. Necessary tax relief like charitable donation should be implemented as well; the general idea is to use legal and market rules to guide the direction of charity. If a large number of social donations is directly used for social welfare, it will greatly reduce the burden on government public services, further enhancing social governance and the level of development of civil society, as well as improving capital utilization rate.