APPOINTMENTS

Tuesday, February 3, 2009 1:43 PM

Daschle Pulls Plug On HHS Bid

By GEORGE E. CONDON JR., CongressDaily

President Obama pulled former Senate Majority Leader Tom Daschle's nomination to be HHS secretary today after Daschle said he did not want tax problems to distract from the need to reform America's health care system.

"I accept his decision with sadness and regret," Obama said in a statement issued by the White House. Obama said Daschle erred by not paying nearly $140,000 in back taxes and interest until last month, but said that mistake should not overshadow Daschle's long career in public service.

Daschle had been picked to be the architect of the Obama administration's high-profile effort to overhaul the health care system. Instead, his departure and the search for his replacement will bring that process to a halt.

In a statement issued late this morning, Daschle called the nomination "one of the signal honors of an improbable career." He said he asked to withdraw because the president needed someone who could lead "without distraction" and Congress needed to focus on efforts to revive the economy and provide health care rather than being sidetracked by his nomination.

Daschle's nomination had been viewed as a slam dunk when it was announced, given his former leadership of the body that would confirm him. But revelations that he had recently paid back taxes and penalties put the brakes on his confirmation.

The bulk of the back taxes stem from a car service provided by a private equity investment fund run by Leo Hindery Jr., a friend of Daschle's and a major Democratic fundraiser.