but a quick look at
Barack Obama.com does not indicate Obama plans any drastic changes that would affect the current tax situation in an adverse way.
Nothing on the
Social Security page that suggests any such thing. Ditto the
Fiscal Policy page or the
Economy page. In fact, the last page mentions he would
eliminate income taxes for seniors making less than $50,000/yr.
Provide Middle Class Americans Tax Relief
Obama will cut income taxes by $1,000 for working families to offset the payroll tax they pay.
* Provide a Tax Cut for Working Families: Obama will restore fairness to the tax code and provide 150 million workers the tax relief they need. Obama will create a new "Making Work Pay" tax credit of up to $500 per person, or $1,000 per working family. The "Making Work Pay" tax credit will completely eliminate income taxes for 10 million Americans.
* Eliminate Income Taxes for Seniors Making Less than $50,000: Barack Obama will eliminate all income taxation of seniors making less than $50,000 per year. This proposal will eliminate income taxes for 7 million seniors and provide these seniors with an average savings of $1,400 each year. Under the Obama plan, 27 million American seniors will also not need to file an income tax return.
* Simplify Tax Filings for Middle Class Americans: Obama will dramatically simplify tax filings so that millions of Americans will be able to do their taxes in less than five minutes. Obama will ensure that the IRS uses the information it already gets from banks and employers to give taxpayers the option of pre-filled tax forms to verify, sign and return. Experts estimate that the Obama proposal will save Americans up to 200 million total hours of work and aggravation and up to $2 billion in tax preparer fees.
It is presently the case that when someone older than 59 1/2 pulls money out of a Traditional, a SEP or a SIMPLE IRA, the money is treated as regular income and is taxed at their marginal rate. IRA money has yet to be taxed (Roth IRA's on the other hand are funded with money that has already been taxed and comes out tax free). The gains are not taxed in the way they would be if it were in a normal investment account. Whatever money they pull out, they will get a 1099-R showing how much it was. That amount is taxed as ordinary income. If what I read in the snippet above goes into effect and they pull less than fifty grand out a year, they will pay no income tax.
Tell your Friend to read Obama's website.