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Evan Falchuk, Don Berwick release tax returns

2 candidates made millions

Two candidates for governor released tax returns Friday disclosing that their work in the health care industry made them millions of dollars in recent years.

Evan Falchuk, an independent candidate, released three years of tax returns showing that he made nearly $3 million in 2012 for his work with Best Doctors, a global health company headquartered in Boston that provides patients worldwide with diagnoses and treatment. Falchuk was vice chairman of the company that year until he left in June 2013 to campaign full time.

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Don Berwick, a Democratic candidate, reported $1.7 million in adjusted gross income for 2012, mostly for appearances on the speaking circuit at health care conferences and events. Since December 2011, the former director of the US Centers for Medicare & Medicaid Services has worked as a paid speaker for the Leigh Bureau, which bills him as “the United States’ leading advocate for high-quality healthcare.” A company spokesman declined to specify how much he is paid for each speaking engagement.

Filing jointly with his wife, Ann, whose income includes her work as chairwoman of the Department of Public Utilities, Berwick released two years of tax returns, covering the 2011 and 2012 calendar years. He has not yet filed taxes for 2013 and has sought an extension, a spokesman said.

The tax returns he provided to the Globe Friday show that Berwick’s work on the speaking circuit brought him a dramatic pay increase over his government work in 2011. That year, his tax returns show $266,660 in income, reflecting his salary as Medicare administrator, his wife’s work, and supplemental pay of $6,006 for his work as a writer in the medical profession.

For 2012 Berwick paid 34 percent of his adjusted gross income in taxes and contributed $15,867, or 0.9 percent, to charity, according to the returns. For 2011, he paid about 20 percent in taxes and contributed $12,717, or 4.7 percent of income, to charity.

The Berwicks reported capital gains of a few thousand dollars for 2012, but took a deduction for carry-over capital losses of $119,020. They claimed rental profits on a home in Chilmark, Martha’s Vineyard, and they own property in New Hampshire and their home in Newton, according to their tax returns.

Falchuk also had a jump in income in the most recent year of tax returns he provided to the Globe. His 2012 income of $2,949,637 included $1.2 million in wages from Best Doctors and another $1.75 million in capital gains from his share of stock in the company.

He paid about 28.5 percent of his income in taxes in 2012 and his charitable donations of $8,662 amounted to 0.29 percent of his income.

In 2011, Falchuk earned $490,771 in adjusted gross income and paid 24 percent in taxes. His charitable contributions of $6,308 that year represented 1.3 percent of his income.

In 2010, Falchuk made $457,449 in adjusted gross income and paid 24 percent in taxes. His charitable contributions of $5,931 represented 1.3 percent of his income.

Filing jointly with his wife, Felicia, and reporting the dividends of their three children, Falchuk had the largest income to date disclosed by any gubernatorial candidate.

Republican Charlie Baker released his tax returns on July 18 and challenged his rivals to do the same. The three years of tax returns he provided showed that he made an average of $750,000, paid about 30 percent of adjusted gross income in taxes, and contributed about 10 percent to charities in those years.

Democrat Steve Grossman released three years’ worth of returns that day, showing he averaged $828,154 adjusted gross income in the three years after he left the family business to run for state treasurer. Now a candidate for governor, he paid about 25 percent of his adjusted gross income in taxes and contributed 2.6 to 7.6 percent to charities.

Independent Scott Lively released one page showing income of $54,307 last year. Three other candidates — Democrat Martha Coakley, Republican Mark Fisher, and independent Jeff McCormick — have yet to publicly release tax returns.

Stephanie Ebbert can be reached at Stephanie.Ebbert@ globe.com.
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