Remove the background in desktop shortcuts in Xubuntu

To remove the background color on your Xubuntu desktop do the following:

Open your editor of choice with the sudo command.
E.g. sudo gedit ~/.gtkrc-2.0

Paste the following lines into the empty file:
style "xfdesktop-icon-view" {
XfdesktopIconView::label-alpha = 0
fg[NORMAL] = "#ffffff"
fg[SELECTED] = "#000000" }
widget_class "*XfdesktopIconView*" style "xfdesktop-icon-view"

Save the file and log off/log in to see the changes. Now your desktop labels will have a white foreground with transparent background.

You can change the #ffffff (white) to any color it suits your desktop colors. Don't forget to change the #000000 (black) to something that will be visible on your wallpaper.