World | Posted on Feb 04, 2009 at 03:26pm IST

Obama nominees turn out to be tax defaulters

Washington: It was double disappointment for the Obama administration at the White House. Two nominees withdrew their names from the team due to tax troubles. The president's choice to be health and human services secretary, Tom Daschle and Obama's pick to be the nation's first federal performance officer, Nancy Killefer both have withdrawn.

They both decided and recognised that their nominations would distract from the important goals and critical agenda that the president put forward.

Killefer cited problems with payroll taxes with household help. Daschle faced questions about his failure to pay $146,000 in back taxes until a few weeks ago, and Republicans signaled they would have pressed hard for answers.

"I personally think Senator Daschle was going to face some tough questions. And to stop an embarrassment from happening for this president, I think he saved the president from being embarrassed next week in a public hearing," said White House Press Secretary, Robert Gibbs.

The two were the latest stumbles in a rocky confirmation process for Obama's nominees.

Treasury Secretary Timothy Geithner was confirmed last week despite his admission that he was late in paying $34,000 in taxes.

Earlier on Wednessday, President Obama announced his second pick for Commerce Secretary - another Republican invited to his Cabinet - Senator Judd Gregg of New Hampshire.

"With the stakes this high, we cannot afford to get trapped in the same old partisan gridlock," said Senator John Ensign.

Gregg replaces New Mexico Governor Bill Richardson, who withdrew his name last month due to a federal investigation in his home state.

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