http://www.msnbc.msn.com/id/28994296/
WASHINGTON - Former Senate Democratic Leader Tom Daschle on Tuesday withdrew his nomination to oversee the Health and Human Services Department, just a few hours after another Obama nominee also withdrew.
Both had controversies with taxes and cited distractions over that as their reasons for withdrawing.
In a White House statement, President Barack Obama said he accepted Daschle's withdrawal "with sadness and regret."
Daschle has been battling for his nomination since it was disclosed he failed to pay more than $120,000 in taxes.
Daschle, in his statement, said he's withdrawing because he's not a leader who has the full faith of Congress and will be a distraction.
Earlier Tuesday, Nancy Killefer withdrew as nominee to be the first chief performance officer for the federal government.
The White House later released her letter to the president, which in part stated: "I recognize that your agenda and the duties facing your Chief Performance Officer are urgent. 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."
Killefer, a 55-year-old executive with consulting giant McKinsey & Co., was the second major Obama administration nominee to withdraw and the third to have tax problems complicate their nomination after President Barack Obama announced their selection.
When her nomination was announced by Obama on Jan. 7, The Associated Press disclosed that in 2005 the District of Columbia government had placed a lien on her home in the upscale Wesley Heights neighborhood. The local government alleged that she had started missing payments on unemployment compensation tax for a household employee. And she failed to make the required quarterly payments for a year and half, whereupon a lien for $946.69 was placed on her home.
Administration officials had refused to answer questions about the lien, which she resolved five months after it was filed.
During that period, Killefer and her husband, an economics professor, had a teenage son and daughter, but she had two nannies and a personal assistant to run her life when she was on the road, she told Harvard business students back then.
Impressive credentials
On paper, Killefer brought impressive credentials to the two jobs Obama selected her for: deputy director for management at the Office of Management and Budget, which requires Senate confirmation, and a new White House post, chief performance officer for the entire federal government, which does not require confirmation.
Killefer was to work with economic officials to increase efficiencies and eliminate waste in government spending.
Obama repeatedly promised that his administration would go "line by line" over its budgets with a focus on fiscal responsibility even as he seeks huge amounts of money to stimulate the U.S. economy.
Killefer oversees McKinsey's management consulting for government clients. During 1997-2000 in the Clinton administration, Killefer was assistant Treasury secretary for management. As such she was the chief financial officer and chief operating officer for the Treasury and its 160,000 employees and led a modernization of its largest component, the Internal Revenue Service.
Other nominee problems
The Obama administration has had several other nomination problems.
Timothy Geithner was sworn in as Treasury secretary in January, after winning confirmation despite personal tax lapses that turned more than a third of the Senate against him.
New Mexico Gov. Bill Richardson, Obama's initial selection for commerce secretary, withdrew his name amid a grand jury investigation into a state contract awarded to his political donors.
Obama took no questions Tuesday after announcing his choice of Sen. Judd Gregg to be commerce secretary. He left the White House lectern ignoring a shouted question about why so many of his nominees have tax problems.
Ignoring payroll taxes on household help has sunk nominees before. Failure to pay Social Security taxes for a nanny and chauffeur kept corporate lawyer Zoe Baird from becoming President Bill Clinton's attorney general in 1993. Similar problems either blocked or bedeviled other nominees. Still others overcame them, including Shirley S. Chater, the university president who was confirmed to head the Social Security Administration under Clinton despite failing to pay Social Security taxes for a part-time baby sitter.