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Calif. Gov. Schwarzenegger to reverse car tax hike

SACRAMENTO, Calif., Nov 17 (Reuters) - California Gov.-elect Arnold Schwarzenegger said in remarks prepared for delivery after being sworn in as governor he would repeal on Monday a scheduled $4.3 billion hike in the state's car tax.

"As soon as I go inside the Capitol behind me I will sign my first order as governor," Schwarzenegger said in prepared remarks released to reporters before his inauguration as California governor. "I will sign executive order No. 1 which will repeal the 300 percent increase in the car tax."

Repealing the increases, however, could swell California's huge budget deficit by another $7.4 billion next year, bringing the total to $17.8 billion, the state's nonpartisan Legislative Analyst's Office said in a report last week.