Carbon tax may be a necessary evil to stop the environmental pollution and provide initiates to businesses to come up with innovative alternatives. However, any new tax should not undermine a country's capability and her competitive edge.
In order to stop Australian businesses freaking out with looming Carbon tax, the Australian government should propose that all imported goods from the economies (countries) that are not taxing carbon will incur an import tax it equalant to the carbon tax in Australia.
Similarly, any export (from Australia) to the country, which is not taxing carbon, will ge an carbon tax rebate which is paid to the exporter .
This import/export rules, will allow fairer competition with the countries that are not taxing carbon, at the moment.
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