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Obama hit by health nominee's withdrawal

(Agencies)
Updated: 2009-02-04 08:17

WASHINGTON -- Barack Obama's choice to spearhead US healthcare reform stepped down in a flap over personal taxes on Tuesday, an embarrassing blow that distracted from the US president's push for a nearly $900 billion economic stimulus plan.

Tom Daschle, a former Democratic leader in the Senate and a key Obama adviser who was his pick for health secretary, abruptly withdrew after a storm over late tax payments that had raised questions over Obama's pledge to bring high ethical standards to the White House.

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Daschle said he did not want to become a "distraction" after errors forced him to pay $140,000 in back taxes. Obama said in a statement that he accepted the decision "with sadness and regret."

The US president admitted that he was "angry and disappointed" to lose Daschle and Nancy Killefer, who also withdrew her nomination Tuesday over a failure to pay some taxes. 

He later told NBC: "I'm here on television saying I screwed up, and that's part of the era of responsibility."

Meanwhile, the White House said Daschle's withdrawal did not mean Obama's healthcare plans were in trouble.

Former Sen. Tom Daschle, US President Barack Obama's choice to head the Health and Human Services, speaks to the media after a closed session meeting with the Senate Finance Committee on Capitol Hill, February 2, 2009, in Washington. [Agencies]

"The issue of affordable healthcare ... is bigger than one person," said White House spokesman Robert Gibbs. "I don't think the effort slows down for health care reform."

Daschle's withdrawal came shortly after Obama's nominee to become the first US "chief performance officer" also dropped out because of tax questions.

Nancy Killefer, Obama's choice to oversee budget and spending reform, said she did not want her problems to create "distraction and delay."

She was the third Obama nominee to have tax problems, following Daschle and Treasury Secretary Timothy Geithner, who was approved after facing questions about his taxes.

Distraction for Obama

The staff issues put Obama, who is just two weeks into his presidency, on the defensive. On Monday, Obama said he "absolutely" backed Daschle.

Obama, a Democrat, succeeded Republican George W. Bush on Jan. 20 after an election campaign in which he pledged to bring high ethical standards and change to Washington's political style.

On Tuesday Obama had wanted to advance his theme of being able to work across party lines by naming a third Republican to his cabinet -- for the post of commerce secretary -- and scheduled television interviews to push his economic agenda.

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