The paradox of taxation lies at the heart of the political economy and political sociology of modern state during its period of formation in Europe, its solution could help us to understanding the reciprocal relationship between the fiscal development and the state-building. This paradox also appeared in the ancient Chinese history, every dynasty had to kept low levels of tax burden and taken measures to develop the agricultural economy; meanwhile the fragile agricultural economy could not maintain an ever-expanding government. In Chinese history, due to the incomplete law and without hard constraint of government expenditure, the fiscal crisis would make the official tax policy failure, even worse the dynasty also bankruptcy at last.