Tax Issues Force Nancy Killefer To Bow Out

Nancy Killefer, who Obama had in consideration for federal government's chief performance officer, has just resigned from consideration due to tax issues, writes the Washington Business Journal. The article can be read below, but you can find the full text here.

Tax troubles have tripped up another Obama administration official.

Nancy Killefer withdrew from consideration to be the federal government's chief performance officer -- a new position -- because of her past failure to pay unemployment taxes for household help at her D.C. home.

"I recognize that your agenda and the duties facing your chief performance officer are urgent," Killefer wrote in a letter to President Barack Obama Tuesday. "I have also come to realize in the current environment that my personal tax issue of D.C. unemployment tax could be used to create exactly the kind of distraction and delay those duties must avoid. Because of this I must reluctantly ask you to withdraw my name from consideration."

Killefer has been a senior director at McKinsey & Co. and worked in the Treasury Department during the Clinton administration.

Obama created the chief performing officer position to set performance targets for federal agencies and hold managers responsible for reaching these targets.

Tom Daschle Asks President Obama To Withdraw His Nomination for Health And Human Services Secretary

Daschle, who has been fighting for his Health and Human Services Secretary seat, has just requested his name be withdrawn from Obama's list, writes CNN.com. A segment of the article can be found below, but the full story can be found here.

Former Sen. Tom Daschle has withdrawn his nomination to head the Department of Health and Human Services, according to a statement from the White House.

Daschle had been fighting to save his nomination as HHS secretary following controversy over his tax records and questions over his work in a field that some consider lobbying.

In a statement announcing his withdrawal, Daschle said it was an honor to be chosen to lead the reform of America's health care system.

"But if 30 years of exposure to the challenges inherent in our system has taught me anything, it has taught me that this work will require a leader who can operate with the full faith of Congress and the American people, and without distraction," he said.

"Right now, I am not that leader, and will not be a distraction. The focus of Congress should be on the urgent business of moving the President's economic agenda forward, including affordable health care for every American."

The Obama administration had stood by his side, and fellow Democrats lined up behind him, but Daschle's problems, coupled with other nominees' issues, gave critics ammunition to question President Obama's call for a "new era of responsibility."

The president said Tuesday he accepts Daschle's decision "with sadness and regret."

"Tom made a mistake, which he has openly acknowledged. 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, from his years in the military to his decades of public service. Now we must move forward, with our plan to lift this economy and put people back to work," Obama said in a statement.

Daschle's resignation followed Nancy Killefer's withdrawal as Obama's chief performance officer, a new post in the administration.

Officials said privately the reason for Killefer's withdrawal was unspecified tax issues. The much-touted post was designed to scrub the federal budget.

Daschle, the former Senate majority leader, apologized Monday for failing to pay his taxes in full. He said earlier he was "deeply embarrassed" for a series of errors that included failing to report $15,000 in charitable donations, unreported car service and more than $80,000 in unreported income from consulting.

Daschle recently filed amended tax returns and paid more than $140,000 in back taxes and interest for 2005-2007.

A New York Times editorial on Tuesday called for Daschle to withdraw.

The paper's editorial board particularly took issue with Daschle saying he identified the unpaid taxes in June but did not pay them until his nomination for the top post at the Department of Health and Human Services.

The editorial also criticized Daschle for generating a sizable income from health-related industries while working in the private sector.