Other countries with large corporate rate cuts include Belgium (40.2 percent to 34 percent), Luxembourg (37.5 percent to 30.4 percent) and Canada (44.6 percent to 36.6 percent). Only two countries, Germany (40.2 percent) and Japan (40.9 percent), now have higher corporate rates than we do.

 Perhaps the most interesting reforms have taken place in the area of dividend taxation. Although Bush's reduction in the top rate on dividends received by individuals to 15 percent was highly controversial, the United States still has one of the highest tax rates on dividends. Only eight countries have higher rates, with 21 having lower rates. Indeed, the average for all OECD countries is well below the rate here -- 46.4 percent versus 51.3 percent. (The OECD includes taxes on corporations as well as separate taxes on dividends in its calculation.)

 The most dramatic change has been in the Netherlands, where taxation of dividends fell from 74 percent in 2000 to 54.2 percent in 2003. This was accomplished by removing income from saving and investment from the individual income tax base. It will now be taxed separately at a flat rate of 30 percent, as compared to a top rate of 52 percent previously.

 Finally, we see that the tax structure of the OECD continues to move much more toward the taxation of consumption. Every OECD country except the United States now has a value-added tax or other form of national sales tax. These taxes provide about 20 percent of government revenue. Higher VAT rates have financed many of the tax reforms of recent years.

 Historically, liberals have been the principal opponents of a VAT here, on the grounds that it takes more from the pockets of the poor than the rich. But the tide may be turning. Monday's New York Times ran two articles by prominent liberals arguing that a VAT is necessary to pay for government programs for the poor and to save as many as 100 million taxpayers from having to file tax returns. It will be interesting to see if liberals in Congress follow through.