Former Senate Democratic leader Tom Daschle on Tuesday withdrew his nomination to oversee the Health and Human Services Department, citing controversies over his taxes and his ties to the health care industry -- and telling NBC News that a New York Times editorial also played a role.
His withdrawal came just a few hours after another Obama nominee, Nancy Killefer, said she was withdrawing her nomination. Both had controversies with taxes and cited distractions over that as reasons for withdrawing.
White House press secretary Robert Gibbs told reporters the two realized "that you can't set an example of responsibility but accept a different standard of who serves."In an emotional phone call with NBC's Andrea Mitchell, Daschle said he had phoned President Barack Obama on Tuesday morning after reading a New York Times editorial that called on him to withdraw his nomination because of the taxes and industry controversies.
The editorial described Daschle's ability to move "cozily between government and industry" as a cloud over any role he might play in changing the nation's health care system.
"I read the New York Times," Daschle told Mitchell, adding: "I can't pass health care if it's too much of a distraction ... so I called the president this morning."
In a White House statement, Obama said he accepted Daschle's withdrawal "with sadness and regret."
"Now we must move forward," Obama added. A day earlier, Obama had said he "absolutely" stood by Daschle.
"It really sets us back a step," said Sen. Dick Durbin, a Democratic leader. "Because he was such a talent. I mean he understood Congress, serving in the House and Senate; he certainly had the confidence of the president."
Said Gibbs: "We're looking for a new nominee, but the problem has existed for quite some time and the work toward a solution to make health care more affordable won't stop or won't pause while we look for that nominee."
Among those considered for the post before it went to Daschle was Howard Dean, the physician-turned-politician who ran for president in 2004 and recently left as head of the Democratic National Committee.
Daschle had been battling for his nomination since it was disclosed he failed to pay more than $120,000 in taxes. He later paid $128,203 in back taxes and $11,964 in interest.
'A distraction'
In a statement issued by the White House, Daschle 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, he said.
Daschle also was facing questions about potential conflicts of interests related to the speaking fees he accepted from health care interests. Daschle also provided advice to health insurers and hospitals through his post-Senate work at a law firm.
The withdrawal comes after Republicans questioned Obama's decision to stick with Daschle.
Sen. Jim DeMint, R-S.C., said Obama was "losing credibility" with his statements in support of Daschle. "Part of leadership is recognizing when there has been a mistake made and responding quickly," the Republican said.
Killefer withdraws
Earlier Tuesday, Killefer withdrew as nominee to be the first chief performance officer for the federal government.
Source: MSNBC
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