California Now World's 9th Largest Economy

California is now the world's ninth largest economy. Which is quite something and remains the U.S. state with the largest economy ranked by GDP, but it was until recently, the eight largest, a rank now assumed by Brazil, and was even fifth on the list in the early 2000s:

Stephen Levy, Center for Continuing Study of the California Economy director and senior economist, said the California-Brazil swap is more about Brazil rising than California falling. Brazil’s vast population advantage (190 million to California’s 37 million) and the increasing prices of commodities that Brazil exports are just part of the country’s rise, he said....

Levy said California’s economy could soon surpass Italy’s, because of a recession in Italy and a falling euro.

"Report: California slips to world's 9th largest economy" by Jason Hanna, CNN, January 13, 2012

Governor Brown Proposes Tax Increases for Californians

California Governor Jerry Brown is proposing increased taxes as the solution to the state's budget problems:

Brown, a 73-year-old Democrat, wants to raise income taxes on individuals making at least $250,000 a year to 10.3 percent from 9.3 percent, and would boost sales [tax] levies to 7.75 percent from 7.25 percent.

Brown Seeks 7% California Spending Boost, Michael B. Marois and James Nash, Bloomberg, January 5, 2012

See also current California sales tax rates.