Pennsylvania Gov. Ed Rendell visited Pittsburgh on Thursday to explain his plan for taxes.
The governor met with local business leaders to explain his fairer tax system plan.
Under his proposal, the state's tax rate would drop from 6 to 4 percent, but would extend to services and other transactions that are currently exempt.
"I'm outraged that we're the only state in the Union that doesn't tax cigars and somkeless tobacco," said Rendell. "I'm outraged that those big gas companies are making money hand over fist, and bidding 2.5 what we're expected for leases and yet they don't want to pay a severance tax."
Rendell said his new tax system will address future gaps in the state budget.
Thursday's meeting took place at the Borders bookstore on Penn Circle in East Liberty.