California’s economy is one of the largest economies in the U.S, and it is the eighth largest in the world. It is one of the busiest states in the United States. California’s economy specialized on trade, business services, education, health services, international commerce, hospitality, agriculture, and high-technology. It produces at least half of fresh fruits in the United States. Many top  ten companies such as Facebook, HP, Apple, Google, and etc  have their offices in North California, especially in Silicon Valley, Santa Clara, and San Mateo country. For this reason, many people have been coming to the state to find a job and settle. However, in 2009 it faced economic crises which significantly hurt the state’s economy. Today California still goes thought hard time. The state’s economy growth slowly, but it’s still   unstable because the government face a huge deficit with which they don’t know what to do. Many people lost their job; some school and colleges reduced their class size and closed some classes. Some people are suffered by this terrible economic situation in the state. The solution that government found for this problem is raising taxes because it has always been the major resource of state’s budget. So each year they keep going to raise income and sale taxes and cut the budget. The State Government is hoping that raising taxes will eventually help to cover the deficit and recover economy.  Today California has the highest income taxes and second highest sale taxes in the United States. In November 2011 the Gov. Brown suggested a new proposal of  raising income taxes on millionaires in a purpose to avoid additional  budget cutting of public service. As everything this proposal has advantages and disadvantages. Different group of people will get benefit from it or will be hurt by new taxes.