In this paper the author organizes the basic data on national income and tax revenue in such a way as to present a consistent quantitative outline of the development of the tax structure in Mainland China from 1949 to 1983. Special emphasis is placed on the measurements of income elasticity of tax revenue, taxable capacity, and tax performance in order to evaluate how well the tax system has supported national economic objectives. The results of the study illustrate that through its use of a discriminatory tax policy Mainland China has been able to adapt its tax structure reasonably well to the new challenges posed by its program for changing social and economic conditions. On the other hand, however, the tax performance itself has not been very efficient.
