cabinet of Prime Minister Anneli Jäätteenmäki. After Jäätteenmäki's resignation, Vanhanen was elected Prime Minister and his first cabinet was formed. As a politician, Vanhanen is considered to be part of the liberal wing of the old agrarian Central Party, along with the two other Party ministers from Uusimaa region. His government cut the top state income tax rate from 35.5% to 33.5% in 2005 and 32.5% in 2006 (resulting in approximately 55% total tax rate after local government and social security taxes). The corporate tax rate was also lowered to 26% and capital gains to 28% (both formerly 29%), though at the same time dividends were partially made taxable. Presidential candidate As the Centre Party candidate, Vanhanen challenged President Tarja Halonen in the 2006 Finnish presidential election. He received 18.6% of the vote, coming third to the National Coalition Party's Sauli Niinistö (24.1%) and Social Democrat and incumbent Tarja Halonen (46.3%), and thus did not qualify for the runoff. Vanhanen expressed his support for Niinistö in the runoff election against his coalition partner's candidate Halonen. The presidential election, and co-operation between Centre Party and National Coalition Party, proved to be a major strain on the government coalition between the Centre Party and Social Democrats. The flashpoint came in March, when the Centre Party demanded national agricultural subsidies to cover farmers' losses when the Finnish exception in the European Union's Common Agricultural Policy was about to expire. At the end of the crisis Vanhanen told his parliamentary group that taxpayers would cover ninety percent or about 100 million euros in losses. Matti Vanhanen received 25,000 euros for his presidential election campaign in 2006 from Ahti Vilppula via his company Helsingin Mekaanikkotalo. Mekaanikkotalo is owned by Procomex in Luxembourg and further by Kilbrin Investments Limited in the Virgin Islands. In 2009 it was found out that this finance was not included in the finance announcement. Vanhanen's second cabinet After the March 2007 election the Centre Party narrowly remained the largest party after losing four seats. However their coalition partner, the SDP, lost eight seats and the centre-right National Coalition Party gained ten. Vanhanen's second cabinet was formed on a centre-right basis, with minor partners the Green League and the Swedish People's Party. A scandal involving Vanhanen's second cabinet began rolling in May 2008, after the leader of the Centre Party's parliamentary group Timo Kalli said publicly that he would not reveal information