NEGAUNEE -- I sat down with a Negaunee resident and senior citizen who did not want her identity revealed.

When she first heard of the proposal to remove the exemption that keeps pensions tax-free, she wasn't happy.

"I was disgusted, mad, and worried because being on a fixed income, it’s not something that you want to hear that you owe money," the Negaunee senior said.

Thursday was a day like any other day for her.  She woke up, took her medication, and fixed herself a pot of hot coffee.

While her schedule is much slower than it was while she was working, the senior Negaunee resident still has big expenses, like insurance and medication, that are covered by two private pensions plus a little social security.

"You know I can say, well I’ve got this bill and I’ve got that bill and I’m a little concerned because I may not be able to pay it, but I think it will be okay,” the Negaunee senior said.  “But if you're in the other generation, you have no conception."

But what many don't know, and what she didn't know either, is when Governor Snyder talks about taxing pensions, he's not talking about all pensions. 

For the average senior couple with the typical amount of social security income, approximately $24,000, and the average homestead property tax credit, approximately $548, they will not owe any state income taxes on their pensions if they have a total income below $41,000.

For retirees with an income over $41,000 total, their pensions will be taxed 4.25 percent.  Their social security, however, will not be taxed.

And the Negaunee resident I spoke with agrees that it wouldn't be unreasonable to tax seniors with very high pensions.  But she doesn't think those with a modest retirement income should be taxed at all.

“I feel that if they make a certain amount of money, then they should be taxed, if they're on a pension,” the Negaunee senior said.   “Like I said, the rest of us, it's very hard, and any senior citizen will tell you that."

Friday, we'll tell you in more detail how this legislation might affect you.