The States hopes the plans will make the island more competitive
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Employers in Guernsey are to bear a greater burden for a multi-million pound financial shortfall when corporation tax is scrapped.
The States has agreed on big changes in social security contributions.
The current upper limit is £36,000 a year for companies. This will be raised to £100,000 a year. Employees will only have to pay a maximum of £60 a year.
Budget deficits of up to £50m have been projected when the corporation tax is scrapped in 2008.
Contingency reserve
Meanwhile, States members have rejected moves to halve the amount of money earmarked from Guernsey's so-called "rainy day fund" to soften the blow from the Policy Council's tax plans.
The council is proposing to spend a total of £100m from the contingency reserve.
Deputy Mark Dorey wanted the total cut to a maximum of £50m to safeguard the fund from unnecessary strain.
The Policy Council is proposing spending the £100m over three years.
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