US PRESIDENT Barack Obama suffered a reversal in his attempt to clean up politics in Washington yesterday when one of his mentors was forced to withdraw from a cabinet post amid concerns about his payment of income tax.
Tom Daschle, a former Democratic leader who guided Obama from his arrival in Washington four years ago, withdrew from consideration for the post of health and human services secretary after it emerged he had failed to pay $100,000 (€77,000) in taxes for a donated limousine.
In a brief statement, Mr Daschle acknowledged that the controversy over his personal finances was damaging Mr Obama, and would hurt his chances of reforming America’s healthcare system.
He did not want to be a distraction to Mr Obama, who said he accepted the departure of one of his closest confidantes “with sadness and regret. Now we must move forward.” Mr Daschle had insisted barely 24 hours earlier that he would press ahead with his confirmation hearings.
It emerged that he hurriedly paid more than $140,000 in back taxes and interest during his confirmation process earlier this year.
The taxes were owed on a limousine and driver provided by a media and communications firm. Mr Daschle was the chairman of the company’s advisory board.
With his swift exit, it appeared that Mr Obama as well as Mr Daschle wanted to allay questions about ethics.
“Tom made a mistake, which he has openly acknowledged,” Mr Obama said of his close personal friend. “He has not excused it, nor do I. But that mistake and this decision cannot diminish the many contributions Tom has made to this country.”
However, it may not prove so easy to make a clean break. Mr Daschle, who left the Senate after his defeat in the 2004 elections, had long faced questions about his post-political career moves.
He moved directly to advising lobbying firms – a path at odds with Mr Obama’s stand against lobbyists’ influence on politics. Since leaving the Senate, Mr Daschle earned almost $5 million. His wife, Linda, was also a prominent lobbyist.
Mr Daschle was one of Mr Obama’s earliest supporters on Capitol Hill. Mr Obama took on his most seasoned staff to run his Senate office when he arrived in Washington in 2004. Mr Obama also relied heavily on political operatives with South Dakota connections during the Democratic primary campaign and in his grassroots organising effort.
The damage caused to Mr Obama’s image by the latest troubles was deepened by the disclosure last month that treasury secretary Tim Geithner hurriedly paid $42,000 in taxes and penalties that were owing for several years.
Contenders for jobs in the administration were required to submit to a lengthy questionnaire about their business interests and those of their spouses and adult children. Candidates were also asked specifically about tax payments for domestic help – an area that sunk some of Bill Clinton’s nominations. Mr Obama also imposed more stringent regulations on hiring lobbyists.
Earlier this year, the president moved swiftly to accept the withdrawal of Bill Richardson for consideration for the post of commerce secretary. Mr Richardson, the governor of New Mexico, had faced an inquiry about campaign contributions.
Mr Obama moved to fill the commerce post yesterday, nominating a Republican from New Hampshire, Judd Gregg. But there were still challenges to his promise of changing the way of doing business in Washington.
Nancy Killefer, who was to serve in a newly created oversight post, also withdrew her nomination yesterday. Ms Killefer acknowledged she had failed to pay employment taxes for a household employee. – (Guardian service)