The Prime Minister says he's certain the proposed resources super profit tax is constitutional, after Western Australia threatened to challenge the legislation in the High Court.
The WA government is considering appealing the proposed laws on constitutional grounds, depending on what the final legislation looks like.
State Attorney-General Christian Porter is threatening to take the action to stop what he calls the economic vandalism such a tax would cause.
Kevin Rudd's been dismissive of the report and of a similar comment from mining boss Andrew Forrest, who he met with yesterday.
But there are reports today that the Rudd government is about to announce major changes to the tax plan.
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'Amateurs'
Meanwhile, more business leaders have blasted the federal government over the tax.
Retail veteran Gerry Harvey labelled the Rudd government 'bloody amateurs' for the way it's handled its tax plan, although the Harvey Norman chief says he's not personally opposed to mining tax reform.
Another critical commen has come from Bunnings Group Chief Operating Officer Peter David, who says the economic uncertainty created by the proposed tax may be a concern to some in the retail sector.
Kevin Rudd flew into Mackay in Queensland last night after nearly 48 hours in Western Australia, as he tries to turn public opinion on the mining tax in both states.
