Schwarzenegger defends tax rise

Los Angeles: California Governor Arnold Schwarzenegger defended his decision to raise taxes as a necessary step to stem the state's staggering economic crisis on Sunday during appearances on morning news shows in Washington.

In those interviews, Schwarzenegger also said he would gladly accept money from the federal stimulus package approved by Congress last week even though some fellow Republican governors had balked at the funds. And he predicted that California's economy would begin rebounding next year but would take "years from now to get back to where we were".

The $130 billion (Dh477 billion) state budget signed by Schwarzenegger on Friday has earned the second-term governor jeers from state Republicans, some of whom argued for more spending cuts over tax hikes, including plans for across-the-board sales- and income-tax increases for the first time in 17 years. Schwarzenegger said he drastically slashed spending in the new budget and that elected officials who disagree with his approach are out of touch with the public.

"It's very simple. Listen to the people," Schwarzenegger said on ABC's This Week With George Stephanopoulos.