Chinese path to modernization is the modernization of common prosperity for all people. However, the current income distribution order does not match the strategic goal of common prosperity, mainly manifested as the imbalance of the first distribution, the failure of the second distribution, and the weightlessness of the third distribution. Centering on the political goal design of “standardizing the order of income distribution and the mechanism of wealth accumulation”, China should optimize and reform the order of income distribution according to the degree of difficulty, and build a modern distribution order that matches the common prosperity. Its optimization path can be divided into a series of reforms as follows. Under the guidance of people’s livelihood, we will weaken product tax, reduce people’s livelihood tax burden, optimize the financial expenditure structure on the basis of protecting people’s livelihood, increase the strength and accuracy of people’s livelihood transfer payments, and collect property tax and inheritance tax. Under the people-oriented approach, we will create a humanized personal income tax system, strengthen the reform of non-tax income, and cultivate the public’s awareness of public welfare ontology. Under the guidance of democracy, we should build a standardized market economic system, promote the process of fiscal democratization, and introduce the Basic Law on Wages and other reforms. The ultimate goal is to narrow the income gap and help achieve common prosperity. The main innovation of this study lies in the systematic definition of distribution order and the accurate analysis based on it. Its practical significance lies in the tentative analysis of the optimization of China’s future distribution order based on the historical background of Chinese path to modernization, which has the level of reform content and the difference of reform means.