Video: McCain releases tax returns

updated 4/18/2008 1:26:57 PM ET 2008-04-18T17:26:57

Republican presidential candidate John McCain reported taxable income of nearly $259,000 on his 2007 tax returns, an individual filing that does not include his wife's far more extensive wealth.

He earned a total of $405,409 last year and donated a quarter of it to charity, according to tax returns that provide only a partial picture of his family's enormous wealth.

McCain and his wife, Cindy, have kept their finances separate throughout their 27-year marriage, and long have filed separately.

The Arizona senator routinely is ranked among the richest in Congress. But a prenuptial agreement has kept most of the family's assets in the name of his wife, an heiress to a Phoenix-based beer distributing company. Her worth is estimated at more than $100 million.

McCain's individual return was released Friday. It shows that McCain paid $84,000 in taxes in 2007. He gave $105,000 to charity and also donated $177,000 in royalties from five of his books, including the biographical "Faith of My Fathers" and "Worth the Fighting For."

His income included his Senate salary of $161,708, a Navy pension of $58,358 and Social Security income of $23,157.

Aides say Cindy McCain will not release her tax returns to protect the privacy of her four children; details of their wealth are included in her filing.

Because Arizona is a community property state, McCain and his wife each must report one-half of their shared income and expenses. So, though McCain reported $258,800 in taxable income on his 2007 return, the couple's joint income was twice that amount. According to their tax returns, Cindy McCain's income from the beer distributorship, Hensley & Company, was $432,991 in 2007.

McCain's campaign also released his 2006 tax returns. For 2006, he reported income of $215,304 and paid $72,771 in taxes. He also reported charitable gifts of $64,695 and book royalty donations totaling $80,390.

Earlier this week, Democratic presidential hopeful Barack Obama and his wife, Michelle, reported making $4.2 million last year. That was a significant jump in their income from the previous year. Profits from his books "Dreams From My Father" and "The Audacity of Hope" accounted for some $4 million. The Obamas paid federal taxes of $1.4 million and donated $240,370 to charity.

Their salaried income was $260,735, which included his salary as a U.S. senator and hers of $104,000 as vice president of community and external affairs at the University of Chicago Medical Center.

By comparison, Hillary Rodham Clinton and her husband Bill, the former president, reported $20.4 million in income for 2007 but have asked for an extension on filing their returns. Almost half the former first couple's money came from Bill Clinton's speeches. The Clintons have made nearly $109 million since leaving the White House in 2001, capitalizing on lucrative business ventures and his speaking engagements.

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