Six days before the primary, former wrestling executive and Republican Senate candidate Linda McMahon and her husband released their 2011 tax returns which shows the couple’s earnings dropped about $6 million.
The tax return show the couple earned $24.1 million in 2011, and paid about $3.6 million in federal taxes and $1. 72 million in state taxes.
McMahon’s campaign released her 2010 returns at the end of July because it was concerned the 2011 returns would not be filed prior to the Aug. 14 primary. The couple is still waiting on documents regarding investment income, but according to Tim Murtaugh McMahon’s campaign spokesman, they were told the taxes could be filed without it and amended later.
McMahon’s primary opponent, Chris Shays, had made an issue about McMahons unwillingness to release the tax returns following their last televised debate in July.
Shortly after that debate is when McMahon released her 2010 tax returns which showed her and her husband Vince earned about $30.6 million and paid a tax rate of about 15.35 percent. Most of the couple’s income comes from stock dividends, which are taxed at a rate of about 15 percent.
The tax rate paid by the McMahons, who live in Greenwich, has become part of the debate between her and one of her potential Democratic opponents, U.S. Rep. Chris Murphy.
Earlier this week Murphy criticized McMahon’s economic plan saying it‘s designed to give her a $7 million tax break. Murphy says if the Bush-era tax cuts are permitted to expire, the tax rate on stock dividends and capital gains would revert to 39.6 percent, which using the McMahon’s 2010 tax filings, would cost the couple an extra $7 million in taxes.
“As far as the debate in Congress over whether the existing tax brackets should stay the same or go up, Linda does not believe that now is the time to raise taxes on anyone,” Murtaugh has said. “When the economy improves, however, she would be willing to pay more herself. That is a wholly separate issue from our proposal to actually cut taxes for the middle class.”
Murphy and his wife reported about $220,000 in income in 2011 and paid a tax rate of about 22 percent.
Meanwhile, the McMahons charitable donations increased in 2011.
The McMahons made about $122,000 in charitable donations through their personal return and $1.6 million in donations through the Vince and Linda McMahon Family Foundation in 2010.
In 2011 the couple made nearly $2.3 million in charitable contributions, most of it through the Vince and Linda McMahon Family Foundation.
The Foundation made a $150,000 donation to Ability Beyond Disability, a nonprofit now headed by her former campaign manager, David Capiello. It made a $150,000 donation to Achievement First, which operates charter schools in Connecticut, and $333,000 went to the McMahon’s alma mater East Carolina University. They also donated $1 million to Sacred Heart University.