Barack Obama's choice to head US healthcare reform withdrew in a storm over personal taxes yesterday, prompting the president to admit "I screwed up" and distracting from his drive for a nearly $900 billion economic stimulus plan.
Tom Daschle, a former Senate Democratic leader and key Obama adviser who was named as health secretary, withdrew after a storm over late tax payments raised questions about the president's pledge to bring high ethical standards to the White House.
Mr Daschle said he did not want to become a "distraction" after paying $140,000 in back taxes for failing to report as income the use of a company car and driver for several years.
Mr Obama said in a statement he accepted the decision "with sadness and regret" because Mr Daschle was highly qualified for the post, and he acknowledged in television interviews later that he had erred in not anticipating the problems.
"I think this was a mistake. I think I screwed up and I take responsibility for it," Mr Obama told CNN, adding he did not want to send a message there is one standard for the powerful and another standard for ordinary people.
"Ultimately I have to take responsibility for a process that resulted in us not having an HHS (Health and Human Services) secretary at a time when people need relief on their healthcare costs," he told Fox.
White House spokesman Robert Gibbs said Mr Daschle made the decision to withdraw himself and it did not mean Obama's healthcare plans were in trouble.
"The issue of affordable healthcare ... is bigger than one person," Gibbs said. "I don't think the effort slows down for health care reform."
But some Democrats said the removal of Mr Daschle, who had written a book on healthcare reform and had broad experience in Washington, was a significant setback.
"It hurts, because Tom Daschle brought special experience and qualities to this undertaking that almost no one can match," said Senator Richard Durbin. "It does slow us down."
Mr Daschle's withdrawal came shortly after Mr Obama's nominee to become the first US "chief performance officer" also dropped out yesterday because of tax questions.
Nancy Killefer, Mr 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 Mr Daschle and Treasury Secretary Timothy Geithner, who was approved after facing questions about late payments.
Reuters