Obama cabinet nominees withdraw over tax issues

February 4, 2009

On Tuesday, United States President Barack Obama saw two of his cabinet nominations withdraw from consideration after issues with their taxes became public knowledge.

Former Senator Tom Daschle from South Dakota withdrew after it was revealed he failed to pay US$128,203 in taxes. He has since made the payment including a $11,964 interest payment. Obama had nominated him as the Secretary of Health and Human Services.

Nancy Killefer, whom Obama had appointed to the newly created position of Chief Performance Officer, withdrew her nomination because she had failed to pay payroll taxes on a household employee.

"I think I screwed up," Obama said in an interview with CNN. "And, I take responsibility for it and we're going to make sure we fix it so it doesn't happen again."

Last week, Timothy F. Geithner survived his nomination and was confirmed as Secretary of the Treasury, even though it was revealed that he had failed to pay $34,000 in taxes on income earned while working for the International Monetary Fund.