White House officials and Senate Democrats today were fighting to keep alive former Senator Tom Daschle’s cabinet nomination, the morning after
’s nominee for health and human services secretary faced a tough grilling from his former Senate colleagues over revelations he had initially failed to pay more than $140,000 (£97,700) in taxes and interest.
President Barack Obama yesterday said that he was “absolutely” behind Daschle, former Senate Democratic leader from South Dakota and a mentor to Obama, and press secretary Robert Gibbs said White House staff had been lobbying senators to support the nomination.
“It was a serious mistake, one that he caught and remedied,” Gibbs told reporters. “We think he is still the best person to do healthcare reform and shepherd that very complicated process through Congress to achieve savings and cut costs for the American people.”
Daschle is known as a healthcare expert and has co-authored a book on healthcare reform. He is also close to Obama and widely liked and respected in the Senate, making him an asset in Obama’s upcoming effort to broadly revamp the US healthcare system.
But since his nomination, he has revealed that he failed to pay a staggering sum in taxes on a car and driver provided to him by a friend and wealthy Democratic donor.
Critics say the image of a former senator receiving such a benefit – estimated to be worth more than $255,000 over three years – from a wealthy businessman is at odds with Obama’s push for stricter separation between government and industry.
Daschle is the second Obama nominee to face confirmation trouble over non-payment of taxes. Obama’s nominee for treasury secretary, Tim Geithner, admitted that he had failed to pay tens of thousands of dollars in income taxes while working for the International Monetary Fund. Geithner ultimately won Senate confirmation.
Last night Daschle sat through a long closed-door meeting with members of the Senate finance committee, who questioned him about the tax issue. Senators have said they have more questions about how Daschle came to owe $140,167 in income taxes and interest.
Daschle emerged from the closed-door session last night looking ashen, and hardly confident about his prospects.
“When I realised the mistake I notified officials and I paid the tax in full,” he told reporters. “It was completely inadvertent, but that’s no excuse and I deeply apologise to president Obama, my colleagues, and the American people.”
Daschle said he hoped his “mistake” would be weighed against his 30 years of public service.
This morning, the New York Times called for Daschle to step aside, noting the tax issue and the fact that he drew a sizeable income from healthcare companies he will be expected to regulate as health and human services secretary.
“It would send a terrible message to the public if we ignore the failure of yet another high-level nominee to comply with the tax laws,” the paper wrote.
Also today, Obama is expected to nominate Republican New Hampshire senator Judd Gregg as commerce secretary. Gregg said yesterday that he would not leave the Senate unless he were to be replaced by a Republican.
New Hampshire governor John Lynch, the Democrat who would appoint a replacement, indicated last night that he would appoint a Republican to fill the seat until the 2010 election.
“It is important that President Obama be able to select the advisers he feels are necessary to help him address the challenges facing our nation,” he said in a statement. “If President Obama does nominate Senator Gregg to serve as commerce secretary, I will name a replacement who will put the people of New Hampshire first and represent New Hampshire effectively in the US Senate.”
Gregg replaces another scandal-plagued Obama appointee: New Mexico governor Bill Richardson, who withdrew from consideration amid revelations that a financial services firm that contracted with the state had contributed to a political fund he controlled.