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http://www.latimes.com/news/nationworld/washingtondc/la-na-tom-daschle4-2009feb04,0,3428654.story
Daschle's departure comes shortly after Nancy Killefer withdraws as Obama's choice to become the nation's first chief performance officer.
By Michael Muskal and Mark Silva
10:28 AM PST, February 3, 2009
reporting from washington -- Tom Daschle, who paid more than $140,000 in owed taxes and interest, withdrew his nomination to head the department of Health and Human Services today.
The move came after leading newspapers questioned his ability to serve after the tax situation was revealed. It also came hours after Nancy Killefer, picked by President Obama to be the federal government's first chief performance officer, withdrew her nomination after reports that she had failed to pay employment taxes for household help.
Killefer was the third appointee by President Obama to have tax problems. Timothy Geithner was confirmed as Treasury secretary despite owing more than $34,000 in taxes that he paid.
"Now we must move forward," Obama said in a written statement accepting Daschle's request to be taken out of consideration. On Monday, Obama said he "absolutely" stood by Daschle, who apologized to the Senate Finance Committee for his tax situation.
Daschle, the former Democratic leader in the Senate, said he would have not been able to operate "with the full faith of Congress and the American people."
"I am not that leader and will not be a distraction" to Obama's agenda, said Daschle, the former senator from South Dakota.
Daschle was one of Obama's earliest supporters and was well liked by his former Senate colleagues. He had been expected to be easily confirmed until the tax issues arose.
Daschle failed to report $128,000 in taxes owed from his work as a consultant. He had neglected to report the use of a car and driver as income and there were questions whether all of his pay had been reported.
Daschle apologized for what he insisted were mistakes. He repaid the owed taxes plus more than $11,000 in interest.
"Tom made a mistake, which he has openly acknowledged," Obama said. "He has not excused it, nor do I. But that mistake and this decision cannot diminish the many contributions Tom has made to this country."
The White House this morning said Obama had accepted Killefer's decision to withdraw.
"Nancy Killefer has decided to withdraw her nomination, and we accepted her withdrawal," Tommy Vietor, a White House spokesman, said today.
Killefer, 55, is an executive with financial consulting giant McKinsey & Co. "I recognize that your agenda and the duties facing your chief performance officer are urgent," Killefer wrote in a letter released by the White House. "I have also come to realize in the current environment that my personal tax issue of D.C. unemployment tax could be used to create exactly the kind of distraction and delay those duties must avoid.
"Because of this I must reluctantly ask you to withdraw my name from consideration," she wrote.
When Killefer's selection was announced in January, the Associated Press disclosed that in 2005 the District of Columbia government had filed a $946.69 tax lien on her home for failure to pay unemployment compensation tax on household help.
Since then, administration officials refused to answer questions about the tax error, which she resolved five months after the lien was filed.
Killefer was the second major Obama administration nominee to withdraw. Gov. Bill Richardson withdrew as Obama's choice to head the Commerce Department after reports of a federal probe into the issuing contracts in his state.
Obama today announced that he will nominate Sen. Judd Gregg (R-N.H.) as his new Commerce secretary. The governor of New Hampshire is expected to name a replacement who will caucus with Republicans, making sure that Democrats are still short of the 60 senators needed to prevent the GOP from staging a filibuster.
Obama took no questions at the news conference where the Gregg nomination was announced.
Killefer's nomination as deputy director for management at the Office of Management and Budget was never sent to the Senate. Her duties as chief performance officer were an added portfolio that did not require Senate confirmation.
Problems with not paying taxes for household help have created problems before. Failure to pay Social Security taxes for a nanny and chauffeur kept Zoe Baird from becoming President Bill Clinton's attorney general in 1993.
The withdrawal is also expected to create comparisons with other Obama nominees. Geithner paid more than $40,000 in taxes and interest, and Daschle paid more than $140,000 in taxes and interest.
Wow, you sure read a whole lot into 4 words that didn't even mention Obama.