How does SC Senator Lindsey Graham make his money. What his tax returns say
More than 10 years worth of tax returns show U.S. Senator Lindsey Graham’s wealth comes mostly from his annual congressional salary and, since 2015, a military pension, making him one of the lowest earners among his Senate colleagues, according to his campaign.
In total, between 2008 and 2019, Graham reported $2.1 million in adjusted gross income and paid $495,000 in federal and state income taxes, according to tax returns made available by his reelection campaign.
Graham, who is one of the least wealthy members of the Senate, is in a close re-election battle with Democratic challenger Jaime Harrison. A poll last month had the race tied with 44%, and both campaigns have raised tens of millions of dollars allowing them to flood the airwaves with television ads.
The State newspaper requested both campaigns provide tax returns for their candidates in order to understand their sources of income and wealth. Graham’s campaign allowed The State to view the three-term senator’s returns on Tuesday evening.
The release of the tax returns comes as Graham’s campaign has questioned how much money Harrison earned during his career as a lobbyist. Graham called on Harrison to provide the same amount of tax returns.
Between 2008 and 2019, Graham’s adjusted gross income listed on his federal tax return ranged from $152,000 to $206,000.
Most of Graham’s income was his Senate salary, which is $174,000 a year. Graham, who served in the Air Force, Air National Guard and Air Force Reserve, also receives an annual pension for his 33-year career in the military. In 2019, the pension was nearly $35,000.
Since 2008, Graham has contributed more than $46,000 to charity. The amount includes donating a 2005 Crown Victoria to Miracle Hill Ministries in Greenville in 2016 when the car was valued at $2,600.
The Graham campaign points out the senator, who grew up in a room behind his family’s business in Central, has provided financial assistance to family members over the years in addition to his charitable giving.
“Lindsey Graham grew up in a hard-working, blue collar family of modest means, and he remains one of the least wealthy members of the Senate,” said Communications Director T.W. Arrighi. “Senator Graham feels blessed to have the privilege of serving as U.S. Senator and considers representing his home state to be the honor of a lifetime.”
Graham’s wealth has grown since 2014 when he reported up to $741,000 in assets. He reported up to $1.2 million in assets in 2019, according to his Senate financial disclosure forms. Much of those assets are tied up in various mutual funds.
In 2012, Graham refinanced the mortgage on his Seneca house for between $50,000 and $100,000 according to financial disclosure reports. He ended up paying off that loan in six years.
Graham also owns an undeveloped piece of land in Seneca worth no more than $15,000.
His only listed debt is the mortgage on his Washington D.C. townhouse, according to his latest Senate Financial disclosure.
Graham also previously had income from renting out a room in his townhouse.
In 2008, he reported $5,870 in net rental income, but it decreased each year until 2014, the last year he rented out the room, earning him $546.
Graham also has income through investments.
Between 2012 and 2019, Graham reported capital gains ranging from $2,571 to $16,343, according to his tax returns.
Investments didn’t always serve as extra income for Graham. Between 2008 and 2011, Graham reported net losses from his investments at a time the country recovered from the Great Recession. In 2009, Graham reported a net capital loss of $5,500.
Even though Graham didn’t always have capital gains, he did receive dividends over the years. Between 2008 and 2019 he reported $29,921 in dividend earnings. Each year those dividends ranged from $1,012 and $4,559, according to the returns.
The 2017 tax reform, which Graham voted for, also reduced how much Graham was able to deduct in local property and income taxes paid on the local and state level. Graham had regularly deducted between $15,355 and $21,761 every year from his federal taxes because he paid the amount in state and local taxes. However, the tax reform packaged capped state and local taxes deduction at $10,000 starting in 2018.
This story was originally published September 9, 2020 at 12:34 PM with the headline "How does SC Senator Lindsey Graham make his money. What his tax returns say."
