BARACK OBAMA faces fresh problems with staffing his administration following the revelation that Tom Daschle, his nominee for health secretary, failed to pay more than $128,000 (€100,000) in taxes.
Republicans in the Senate, where Mr Daschle formerly led the Democrats, suggested he might still be confirmed, saying they would wait for the Senate finance committee to investigate.
Mitch McConnell, leader of the Republican minority in the Senate, told CBS yesterday: “Tom Daschle is very popular in the Senate and a great public servant.”
But he added: “It does raise some questions about the vetting process.”
The revelations about Mr Daschle follow the news that Tim Geithner, the treasury secretary, failed to pay more than $34,000 (€26,500) in taxes while employed at the International Monetary Fund.
Mr Geithner was confirmed by the Senate after apologising for the mistake, but by a surprisingly narrow margin.
Mr Daschle, an expert on healthcare, will head the White House’s drive to build on and reform the existing system to extend health insurance coverage to all.
Mr McConnell, meanwhile, said the balance of power in the Senate would not change if Judd Gregg, Republican senator from New Hampshire, became commerce secretary.
Mr Gregg acknowledged last week he was in the running for the job. Given that New Hampshire has a Democratic governor who would appoint Mr Gregg’s successor, the move could deprive the Republicans of the seat they need to block legislation in the Senate.
But Mr McConnell said Mr Gregg had assured him any replacement would join the Republican caucus; that is, he could be an independent but would assemble with the Republicans.
The commerce department and the trade representative’s office lack a permanent leader, with Ron Kirk, nominee as trade representative, yet to be confirmed by the Senate.
Business leaders say privately that the absence of key figures has prevented the administration from responding robustly to protectionist moves, such as the “Buy America” provisions in the stimulus package.
Xavier Becerra, thought to be Mr Obama’s first choice for the trade post, withdrew, saying he did not think trade would be a big priority for the administration.
– ( Financial Times)