This is very serious and could affect all states. Under the Senate legislation, the state would tax Social Security income for those who also make money from outside sources, such as wages, pensions and investments. The tax would go into effect in 2014 at a flat 5.4 percent rate. Read more here: http://www.newsobserver.com/2013/06/19/2976611/bill-that-would-tax-social-security.html#storylink=cpy