John McCain has just released his tax returns fro 2006 and 2007, years in which he declared considerably less income than his two Democratic opponents. A combination of senate salary, royalties from his books, social security and pension payments gave him $215,304 in 2006 and $258,800 in 2007. All of the royalties from McCain’s books have gone to charity, totaling more than $1,800,000 since 1998.
Here’s the release and links to his returns from the McCain campaign:
ARLINGTON, VA — Today, U.S. Senator John McCain’s campaign released his tax returns for 2006 and 2007. Senator McCain’s tax returns show that he paid $157,231 in federal taxes for 2006 and 2007. In the past two years, Senator and Mrs. McCain have contributed $340,323 to charitable causes. Below please find summary information about Senator McCain’s 2006 and 2007 tax returns. To view the relevant documents, please see: http://www.johnmccain.com/mccainfinancial
BACKGROUND ON THE 2006 AND 2007 TAX RETURNS Senator and Mrs. McCain have kept their personal finances separate throughout their 27-year marriage. Accordingly, they have for many years filed separate tax returns. However, their home state of Arizona is a community property jurisdiction. In community property states, individuals maintain a separation of all property brought to the marriage, or inherited during it, but share financial responsibility for other assets acquired through the efforts of each spouse during the marriage. This means that their tax returns report one half of each of their community property income and expenses (such as income each of them earn as salaries, Senator McCain’s book royalties, and expenses attributable to both of them such as charitable contributions from community assets). Accordingly, Senator McCain’s 2006 and 2007 tax returns contain a detailed “Statement A” showing the allocation of his and Mrs. McCain’s community property income and expenses to their respective tax returns (2006 – 2007). John McCain’s 2006 and 2007 tax returns, including the community property income and expense allocation, are available for download below. (2006 – 2007) Publication 555 from the Internal Revenue Service is also available for download below. This publication explains the community property filing rules for various states (including Arizona) and their effects on married taxpayers filing separate returns. View SUMMARY OF TAX RETURNS Taxes Paid: For 2006, Senator McCain paid $72,771 in federal income, alternative minimum, and self-employment taxes (LINES 57 and 58) on taxable income of $215,304 (LINE 43), which is a 33.8% tax rate. View For 2007, Senator McCain paid $84,460 in federal income, alternative minimum, and self-employment taxes (LINES 57 and 58) on taxable income of $258,800 (LINE 43), which is a 32.6% tax rate. View Charitable Contributions: Senator McCain donates his royalties from his books to charitable organizations. This sum has totaled over $1,800,000 since 1998 when he signed his first book deal. Senator McCain’s book income of $256,898 for 2006 and 2007 is comprised of earnings for Faith of My Fathers, Worth the Fighting For, Why Courage Matters, Character is Destiny, and Hard Call. Beginning in 1991, Senator McCain has also donated the increase in his Senate salary for that year and each subsequent year to charity because he opposed the Congressional pay increase at that time and pledged not to accept the pay raises. The cumulative total of these donations is over $450,000. 2006 In 2006, Senator and Mrs. McCain donated $129,390 from community assets to charity, of which Senator McCain’s one-half allocation was $64,695. This is 19% of his adjusted gross income. 2007 In 2007, Senator and Mrs. McCain donated $210,933 from community assets to charity, of which Senator McCain’s one-half allocation is $105,467. This is 27.2% of his adjusted gross income for the year. Most of Senator McCain’s contributions were made to the John and Cindy McCain Family Foundation, which makes direct contributions to charities. The Foundation’s tax returns for 2006 and 2007, which include a list of the charities to which Senator and Mrs. McCain contributed through the McCain Family Foundation in 2006 and 2007, are available for download below. (2006 – 2007) SUMMARY OF SENATOR MCCAIN’S ACTUAL (NOT COMMUNAL) INCOME [FROM STATEMENT A OF TAX RETURN] 2006 2007 Senate Salary: $161,675 $161,708 Book Royalty Income: $80,390 $176,508 Social Security Income: $22,104 $23,157 US Navy Pension*: $56,496 $58,358 * [Non-Taxable and therefore not reported as income on Statement A] Note About Mrs. McCain’s Financial Information: Since the beginning of their marriage, Senator McCain and Mrs. McCain have always maintained separate finances. As required by federal law and Senate rules, Mrs. McCain has released significant and extensive financial information through Senate and Presidential disclosure forms. In the interest of protecting the privacy of her children, Mrs. McCain will not be releasing her personal tax returns. Note About Hensley & Company: In her role as Chairman of Hensley & Company, a privately-held business founded by her parents, Mrs. McCain’s main areas of responsibility focus on strategic planning and corporate vision. Having served the greater Phoenix area since 1955, Hensley & Company is widely respected as an exemplary corporate citizen, and makes significant charitable contributions of its own.