When it comes to taxes, we usually compare ourselves to the United States. However, global economic integration spurs, if not demands an international outlook. The drive for lower taxes and fiscal responsibility is not confined to North America.

Bahamas: Earlier this year, reports suggested that Bahamian officials were considering instituting income tax in response to an OECD report which highlighted countries engaging in unfair tax practices. But the governor general's (GG) recent Throne Speech put the kibosh on this speculation. According the to Canadian Tax Foundation, the GG stated that "any form of income taxation or the usual forms of capital taxation are not conducive to the continuing economic and social development of The Bahamas."

Colombia: On March 23rd, the Colombian government announced plans to drop that country's corporate income tax rate by 3% from 35% today to 32% by 2002.

Portugal: Budget 2000 reduced the corporate income tax rate from 34% to 32% effective January 1, 2000.

Romania: Also effective January 1st, 2000, Romania's corporate income tax rate was reduced from 35% to 25%.

And now we turn to Germany. This month, Chancellor Gerhard Schroeder and Finance Minister Hans Eichel stick-handled a massive tax cut package through both houses of Germany's parliament, including the upper house (the Bundesrat) where the opposition parties - not Schroeder's social democrats - hold a majority of the seats.

By 2005, the top marginal income tax rate will be reduced to 42% from today's top rate of 51%. In tandem, the lowest rate will drop to 15% from 22.9% over the same period. And the effective corporate tax rate drops to 38% from 52%, not to mention a variety of other state-specific and industry related measures.

Now other high tax European jurisdictions such as Italy, Spain, Belgium and France will be forced to accelerate their tax reduction schedules. But the real driver for Germany's changes may indeed be developments in the former Eastern Bloc countries - Europe's emerging democracies - like Estonia and Latvia that are pushing the tax reduction envelope.

With the increasing mobility of capital and labour along with the rapid industrialization of the "new Europe", many multinationals are looking to set up shop in these Eastern European countries with flat income taxes and low corporate tax regimes.

The following resolution, adopted by the World Taxpayers Association (22 members in 15 nations including the Canadian Taxpayers Federation) on July 1st at its meeting in Tallinn, Estonia, best captures the trend of international tax reform.

"The taxpayers of all nations need and deserve tax reform and taxpayer protection. We recommend that all nations take these actions and that our member associations work to adopt them.

Each nation (with progressive income taxes) should replace them with a flat tax that has only one low rate and a large personal exemption amount - Estonia is a good example, followed by Latvia and Lithuania.

Each nation should adopt taxpayer protection legislation. If possible, it should be placed in the national constitution. This legislation should: require that any new tax or tax increase be adopted by a specific vote of the people; require a balanced budget; and reduce the pay of members of parliament if the budget is not balanced.

Balanced budgets and flatter taxes - the 2000 World Tour seems to be adding more countries each week.