Breaking: John McCain In Default On Property Taxes

by animated, Sat Jun 28, 2008 at 04:09:44 PM EDT

Promoted -- Josh

Maybe it's part of his anti-tax, slash-the-budget message, but John McCain apparently feels no obligation to pay taxes in the community where he owns a beach-front home:

Newsweek is set to publish a highly embarrassing report on Sen. John McCain, revealing that the McCains have failed to pay taxes on their beach-front home in La Jolla, California, for the last four years and are currently in default, The Huffington Post has learned.
Under California law, once a residential property is in default for five years, it can be sold at a tax sale to recover the unpaid taxes for the taxpayers.
The McCains own at least seven homes through a variety of trusts and corporations controlled by Cindy McCain.

I have no idea how big a story this is, but it certainly looks likely to cause at least a few days of embarassment for the McCain campaign. Between this and the more than $100,000 in credit card debt, McCain certainly doesn't have a stellar record staying on top of his finances.

Then again, with that many houses, it's quite possible the McCains simply forgot about their tax obligations.

Tags: John McCain (all tags)

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Now this

a story... that will linger . now you can relate to common folks..

by aliveandkickin 2008-06-28 04:06PM | 0 recs

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Re: Now this

Common folks pay their taxes or get their houses taken away from them. This ain't that.

by vcalzone 2008-06-28 04:33PM | 0 recs

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Re: Now this

That was my point. It hits home on a subject / reality we all can face.

by aliveandkickin 2008-06-28 05:26PM | 0 recs

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At least if will force McCain to say

something like 'Our accountants handle all that stuff and I guess they must have let that house slip through the cracks.'

That opens up the elitist meme bigtime as the average American doesn't have so many houses that their full-time staff of accountants can overlook the taxes on one.

by GFORD 2008-06-28 05:42PM | 0 recs

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Yeeeeaaahhhhh....

...there really is no good way out of that.

Either portray themselves as negligent or as rich snobs who have so much money they can't be bothered to or are physically incapable of keeping track of their own finances.

by DawnG 2008-06-28 07:57PM | 0 recs

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the elites

I hope he also has trouble trying to explain this off as an error on the part of the accountants. How many average Americans have accountants to take care of all their bills.

Of course, if this is Cindy's house, I am sure that the 'C' word is flying around that house tonight.

by monkeyga 2008-06-28 07:42PM | 0 recs

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Only the little people pay taxes.

So, is the problem that he's old and forgetful, or that he's too rich and out of touch with ordinary people?

by Geekesque 2008-06-28 04:10PM | 0 recs

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I say rich and out of touch for this one.

I just don't see John and Cindy sittin' around the kitchen table whilest the beans are soakin' and payin' the monthly bills, do you?

by GFORD 2008-06-28 05:44PM | 0 recs

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ask yourself

So, is the problem that he's old and forgetful, or that he's too rich and out of touch with ordinary people?

Even without this latest thing, it's got to be inescapably clear, even to his supporters, that McCain is:

old ... check
forgetful ... check
out of touch with ordinary people ... CHECK AND CHECKMATE!

by obsessed 2008-06-28 11:31PM | 0 recs

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Now... you may say...

"Senator McCain... what do I say to the tax man when he comes to my door and says, 'You... have never paid taxes'?" Two simple words. Two simple words in the English language: "I forgot!"

by mistersite 2008-06-28 04:13PM | 0 recs

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Re: Now... you may say...

or, "What are taxes? I am not good with this economy stuff."

by KLRinLA 2008-06-28 07:40PM | 0 recs

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this is also big because

It makes the "They own at least seven houses" part of the news discussion. And the credit card debt. etc.

by John DE 2008-06-28 04:14PM | 0 recs

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Re: Breaking: John McCain In Default On Property T

This needs to go viral. Privilege does have its priveleges I guess. Where is that quote of McCain saying he doesn't really know that much about economics and policy. I guess he really doesn't have to, does he? I guess no one should believe that voting McCain is actually voting in their interest in at at 12 areas I can think of at this point.

by Jeter 2008-06-28 04:16PM | 0 recs

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Re: Breaking: John McCain In Default On Property T

Thanks for bumping this Josh!

I'd love to see how McCain answers this...

-I forgot?

-Too focused on the other six luxury homes?

Especially with working-class people losing their homes because they can't afford their payments, how lame is it that McCain just couldn't be bothered to make his?

by animated 2008-06-28 04:19PM | 0 recs

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Re: Breaking: John McCain In Default On Property T

Congrats on the promotion.

I was trying to rec the diary and couldn't find the button. I freaked out for a couple of minutes, thinking I had lost rec privileges, until I figured out it got bumped.

by Can I Haz Moar Snark 2008-06-28 04:24PM | 0 recs

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Re: Breaking: John McCain In Default On Property T

I especially like the line:

"The McCains own at least seven homes through a variety of trusts and corporations controlled by Cindy McCain."

Whenever reporters visit McCain in Arizona, they're visiting Cindy's ranch, not John's.

by Josh Orton 2008-06-28 04:35PM | 0 recs

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Cindy McCain

Well, now we have Cindy's narrative. She's Marie Antoinette. Just has a ton of money without a care in the world while her husband says that the downturn is all psychological.

by vcalzone 2008-06-28 04:39PM | 0 recs

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LOL

Hey guys, ease off. Just like average Americans who own 7 hours with a wife that is a heiress to a beer dynasty, John McCain struggles with his bills too.

by zcflint05 2008-06-28 04:28PM | 0 recs

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Re: LOL

He's pulling the old "Grover Norquist"--trying to starve the government until it's small enough to drown in a bathtub.

by Can I Haz Moar Snark 2008-06-28 04:32PM | 0 recs

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Re: LOL

Yeah, they'll try to paint it as struggling with his bills. That's bullshit. He's worth a HUGE amount of money, and for a Senator to not pay taxes is unacceptable. Furthermore, how did this not show up on his tax returns? Oh, that's right, he REFUSED TO RELEASE Cindy's. That's not gonna look good.

by vcalzone 2008-06-28 04:33PM | 0 recs

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Actually, he's not worth millions

his wife is, and they do have a pre-nup (plus whatever provisions are in the trusts, which I assume her daddy set up for her long before she got married).

Which means that if Cindy ever decided to ditch him for calling her a "rhymes-with-runt", then he might be pretty SOL.

Of course, in the meantime he lives with her in his choice of 7 large homes, and rides in her private jet, and...

by synchronicity 2008-06-28 04:44PM | 0 recs

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LOL

McCain is a 'kept' man, a trophy husband if you will.

by GFORD 2008-06-28 05:47PM | 0 recs

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Cindy's comment, on John first dating her

"I couldn't understand why he'd be interested in me"

Yeah, why would a 42 year old man be interested in a 24 year old ex-USC cheerleader millionaire heiress? Jeez, I can't imagine...

by synchronicity 2008-06-28 05:50PM | 0 recs

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Re: LOL

trophy husband

some trophy, eh?

by obsessed 2008-06-28 11:36PM | 0 recs

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It wouldn't show up on his returns

because it's property taxes. And since they weren't paid, they shouldn't deductible on anyone's taxes.

Furthermore, if the property is owned by a trust, then depending on the structure of the trust, then even when property taxes are paid, they wouldn't be deductible on John's or Cindy's 1040.

by synchronicity 2008-06-28 05:48PM | 0 recs

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Re: It wouldn't show up on his returns

"shouldn't deductible"

Shouldn't BE deductible. Sorry, posting while watching "Thomas and Friends" with my daughter. Sadly, not any of the episodes narrated by George Carlin.

by synchronicity 2008-06-28 05:54PM | 0 recs

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John McCain sucks at life.

John McCain can't use a computer, can't manage his finances, and can't pay his taxes... and he's running on experience? This man is a gigantic pile of fail. Even Bush paid his taxes.

by Homebrewer 2008-06-28 04:32PM | 0 recs

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Stop with the "credit card debt" bit

The "over 100K in CC debt" is one of those 0% deals. You know, just like the deals that you or I get in the mail seven times a week (albeit at lower credit limits, because I don't know about you, but I don't have Cindy McCain's money).

This property tax story is a good one, and I hope it gets out into the mainstream, but the credit card debt story was just a dumb one. It's the sort of thing that makes people roll their eyes at progressives.

by synchronicity 2008-06-28 04:41PM | 0 recs

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HA HA!

This sounds somewhat more serious than Franken's tax problems, and of course those caused him a huge headache (turning a toss-up to lean GOP).

by Ramo 2008-06-28 04:41PM | 0 recs

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pffft

Do I need to give you a new copy of the memo? McCain is a MAVERICK and a POW. A LEADER. What does something like not paying taxes have to do with the fact that he wears his flag lapel pin and is "proud of America"?

by RandyMI 2008-06-28 05:07PM | 0 recs

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Mavericks don't pay taxes

'cause, ya know, paying taxes is what most people do, so by NOT paying them, he's a maverick. Or sumthin'.

Maybe he can start arguing that "the 16th amendment was not properly ratified" in the hopes of picking up the whackmobile tax protestor ultra-libertarian "sovereign state citizens" vote. That's...what, about 0.15% right there, or probably about three times as many folks as there are PUMA's.

by synchronicity 2008-06-28 05:37PM | 0 recs

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Re: Beer distributorship

When will they ask Sen. McCain if he sees any conflict of interests in his wife chairing a beer distributorship while he is President? She can easily turn the company over to some family member who John McCain is not legally bound to care for.

by Brad G 2008-06-28 05:18PM | 0 recs

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Yea... Right!

His wifes' a millionaire yet your in credit card debt? WTF? And your complaining about pork barrel spending and earmarks?? And your 10 years younger than President Mugabe? Nah... I'm sorry the only people that will vote for this Maverick is the insane. Enough is enough.

by nzubechukwu 2008-06-28 06:24PM | 0 recs

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Stop harping on the CC debt!

stop with the credit card thing! It's stupid! They have a 0% deal, hence the 100K+ on the card. That's being SMART with their finances, not stupid. Don't any other posters here take advantage of low or no interest rate deals with their CC's? I doubt we have credit limits like Cindy McCain, but still...

Now, their one dependent kid (I believe she's the adopted one, ya know, the one who was the inspiration for the "fathered a black child" smear back in the 2000 South Carolina primary) has somewhere north of 10K in CC debt, possibly north of 25K. That bugs me more, as the "party of personal responsibility" thinks it's just fine to let their kids run up tens of thousands of dollars on purchases and have mommy and daddy pay it all off. I know, we know they do that, but seeing it in action still annoys me.

by synchronicity 2008-06-28 07:08PM | 0 recs

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Re: Stop harping on the CC debt!

But why do they have a need for that kind of debt in the first place? Why would they not pay it off, even WITH a 0% interest rate?

by vcalzone 2008-06-28 07:17PM | 0 recs

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Arbitrage. Savings >0% while debt is at 0%

Because they can leave the money they'd otherwise use to pay for stuff sitting in an account gaining interest, and then pay off the whole thing just before the 0% bit expires. I have a bunch of friends who do just that (on a far lower level than the McCain's, obviously). Right now, EmigrantDirect (www.emigrantdirect.com) is offering 2.75% on their online savings account. So if you had a 0% card and charged 100K the first month and didn't have to pay it off for another 12 or 18 months, you're talking 2,750-~4K in interest you wouldn't have otherwise.

I know, that's chickenfeed to the McCain's, but it is free money. "Ordinary" folks who can do that can probably score a few hundred extra bucks, which may be a big deal.

Along similar lines, I have CC's that give me cash back. Best one is 5% back on all gas, grocery, and pharmacy purchases. With the price of gas and food these days, you can imagine how good that deal is. I run all those purchases through that credit card and pay it in full every month so there's no interest charge. It adds up to some serious money (by my standards, not Cindy McCain's) every year.

The point is that using a CC, or running up CC debt if it's very low interest, is not necessarily bad. Running up high interest debt is bad, worse when you have no way of paying it off. Which is the story for too many Americans, but that's a whole 'nuther issue.

by synchronicity 2008-06-28 07:52PM | 0 recs

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Speaking of those types of offers

Looking at yesterday's mail, we just got offers from WaMu (again) for 0% on purchases for 18 months if we transfer a balance now. The minimum transfer amount is $100. That card also offers cash back.

And no, we don't have Cindy McCain money. Last I checked, we had 1/7 the number of houses, and (unless my wife bought one yesterday and didn't tell me :-) ) we have zero private jets.

by synchronicity 2008-06-29 07:52AM | 0 recs

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Re: Breaking: John McCain In Default On Property

I really don't care about the credit card debt. It wouldn't be my choice but the McCain's can finance their lifestyle however they want as long as the payments are made.

The property taxes are completely different - he is legally required to pay them. I don't get why he doesn't do what most people do - have an escrow setup and included them in the mortgage payments so you don't have to think about it.

by jmnyc 2008-06-28 06:27PM | 0 recs

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Re: Breaking: John McCain In Default On Property

I don't get why he doesn't do what most people do - have an escrow setup and included them in the mortgage payments so you don't have to think about it.

I'm guessing they don't have a mortgage, either.

Actually, it's smarter not to do the escrow with mortgage thing even if you have a mortgage, as you can set the money aside accruing interest until the taxes are due. Also, mortgage companies have a habit of screwing up the tax payments, too.

Having said all that, this is incompetence on the part of the McCain's accountant/financial person. Of course, this is also an example of why John McCain is hardly "in touch" with Joe Sixpack, as the overwhelming majority of us don't have our bills paid for by a "financial person". I don't do the escrow thing for property taxes, but I have to write the checks out of my money market fund myself.

by synchronicity 2008-06-28 07:40PM | 0 recs

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Re: Breaking: John McCain In Default On Property T

hahaa. well shit. thats peachy.

by alyssa chaos 2008-06-28 06:38PM | 0 recs

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More evidence against McCain's judgement

No, not the property taxes. Shoot, that will be fixed the day after the story is published.

I'm looking at the fact a guy whose had multiple instances of malignant skin cancer removed still owns a beach house. Cripes, with his diagnosis and considering his age and resources, a sane man would have retired as senator from Arizona, sold that house, sold the beach house in California and moved to Seattle.

Sure, I know you can still get sunburned on a cloudy day, but when is the last time you got sunburned on a rainy day?

by RickWn 2008-06-28 08:38PM | 0 recs

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I'd love to see

the explanation for this one.

by SocialDem 2008-06-28 11:18PM | 0 recs

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Re: I'd love to see

It is fiscally irresponsible to let the government have its money when you could be making 3x the interest penalties playing the market with all the crony info.

by Is This Snark 2008-06-29 12:29AM | 0 recs

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Cindy versus MADD

Turns out Cindy (booze heiress) and her son have been involved in all sorts of legal wrangling against Mothers Against Drunk Driving, and against putting health warnings on alcohol bottles.

Aren't a lot of the evangelicals tea-totalers?

So says NorMAN GoldMAN or whatever his name is.

by obsessed 2008-06-28 11:33PM | 0 recs

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Re: Breaking: John McCain In Default On Property

According to the San Diego County Treasurer's Office, they've collected over 98% of property taxes in the past four years. So why do the McCains think they're better than 98% of San Diego County residents?

by johnny longtorso 2008-06-29 04:14AM | 0 recs

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Re: Breaking: John McCain In Default On Property

Because they are old money.

by vcalzone 2008-06-29 09:47AM | 0 recs

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Breaking: John McCain In Default On Property Taxes

Anyone hear mention of this in the media yet? I sure as hell haven't. Imagine if Obama had not paid his property taxes - the corporate owned media would go into overdrive to point out Obama's irresponsibility.

by agpc 2008-06-29 10:49AM | 0 recs

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John McCain In Default On Property Taxes

This is a NO win for McCain. No matter what excuses he'll throw out there, it'll say something about his financial management or his inability to manage 7 properties. If he can't pay his taxes successfully, why should I believe that he'll be able to oversee 300 million Americans?

by venavena 2008-06-29 10:53AM | 0 recs