WASHINGTON - The withdrawal of Tom Daschle's nomination yesterday as secretary of health and human services and point man on health care reform reflected a growing recognition in the White House that his tax problems were igniting deep anger among voters across the country over an apparent double standard - calls for economic sacrifice by ordinary Americans, tolerance of laxity on taxes by Washington insiders.
Revelations that the former Senate Democratic leader had only belatedly paid $140,000 in back taxes, coming in the wake of a similar failure to meet basic tax obligations by Treasury Secretary Timothy F. Geithner, reached a tipping point yesterday, according to Democratic senators, outside supporters and President Barack Obama.
And Nancy Killefer withdrew her bid to head Obama's new office devoted to improving government performance, acknowledging she hadn't paid employment taxes for a household employee.
The turnaround on Daschle's nomination occurred with lightning speed. Both Daschle and his close allies thought as late as Monday night that he could survive the controversy. By midmorning yesterday, that estimate had changed.
But the groundswell had been building outside Washington for several days. Late last week, Internet bloggers sympathetic to Obama had begun blasting Daschle on the back taxes, as well as on his ties to the pharmaceutical industry and others with stakes in health care legislation.
By early yesterday Democratic senators and administration allies outside the government had begun expressing concern to administration officials about whether Daschle could weather the criticism and remain an effective leader on health care reform.
Obama, seeking to return the focus of attention to his economic stimulus plan, moved quickly to take responsibility for the Daschle imbroglio.
"I've got to own up to my mistake, which is that ultimately it's important for this administration to send a message that there aren't two sets of rules. You know, one for prominent people and one for ordinary folks who have to pay their taxes," Obama said in a television interview.
"And so I'm frustrated with myself, with our team. ... And I'm here on television saying I screwed up and that's part of the era of responsibility, is not never making mistakes, it's owning up to them and trying to make sure you never repeat them and that's what we intend to do."
