The government announced various tax rate changes in a declaration of 2 May 2006 on the economic, social and financial situation of Luxembourg. These proposals are the result of an agreement reached by the triparite council consisting of representatives of the Luxembourg government, employees and unions on changes to key economic factors, including taxes. The measures aim to reduce government expenditure and to increase competitiveness and employment in Luxembourg. The most important proposals, which would apply as from 1 January 2007, are summarized below. Corporate income tax The solidarity surcharge for the employment fund (l'impôt de solidarité) paid by companies...