WASHINGTON, February 2 – Tom Daschle, President Barack Obama’s choice to lead reforms of the costly US healthcare system, said on Monday he was deeply embarrassed about having to pay some $140,000 in back taxes, a lapse that raised questions about his nomination.
Mr Daschle, a former Democratic Senate majority leader, issued an apologetic statement shortly before the Senate finance committee, which must approve his nomination as health secretary, met to consider the issue.
Mr Obama again expressed full support for the appointment.
Robert Gibbs, White House spokesman, said he believed the Senate would look beyond Mr Daschle’s tax mistakes and approve the person Mr Obama believes will do the best job of cutting costs and providing better health care for Americans.
“I think the Senate will lay a serious but corrected mistake against that three-decade career in public service,” Mr Gibbs said.
One of Mr Obama’s first cabinet picks, Mr Daschle was chosen to lead the Health and Human Services Department as well as a new White House office on healthcare reform as the new president moved fast to fulfill his promise to revamp the $2,300bn health care industry.
“As you can well imagine, I am deeply embarrassed and disappointed by the errors that required me to amend my tax returns,” Mr Daschle said in a letter to Senator Max Baucus, the Democratic chairman of the finance committee, and Senator Charles Grassley, the top Republican on the panel.
“I apologize for the errors and profoundly regret that you have had to devote time to them,” he told the senators in a letter dated Sunday and issued on Monday. “I will be happy to answer any committee members’ questions about these issues.”
The letter did not mention the exact amount in back taxes that Mr Daschle paid, but The Washington Post reported the sum at about $140,000 in taxes and interest.
Mr Daschle was the second Obama nominee to stumble over tax matters while seeking confirmation in the Senate. Timothy Geithner, Treasury secretary, had to pay $34,000 in back taxes and faced tough questioning in the Senate before he was confirmed.
New Mexico Governor Bill Richardson, another high profile Obama pick who had been tapped to head the commerce department, withdrew his name from consideration in January in the face of a legal inquiry.
Mr Obama said on Monday he “absolutely” stood behind Mr Daschle, who also received backing from Harry Reid, Senate majority leader, as well as Mr Baucus, who said he was convinced Mr Daschle would be “an invaluable and expert partner” on healthcare reform.
Republicans appeared to be adopting a wait-and-see approach, with Mitch McConnell, the Senate Republican leader, telling CBS News on Sunday it was a “quite a surprise” but he wanted to hear from the finance committee about it.
Mr Baucus said in a statement that all issues raised by the vetting process would be “considered carefully and thoroughly” by the committee, which would discuss the findings and decide on its next steps. He said he might comment further after the meeting which starts at 5pm.
In his letter, Mr Daschle said the tax issue stemmed from his use of a car and driver offered to him by a close friend and consulting client.
He said when he was being considered for the position of health secretary in the fall, the president’s transition team flagged charitable contributions they felt were in error.
Mr Daschle said when his accountant realized he would have to file amended returns, he suggested addressing the issue of the car service as well and advised him that the value of the car and driver should be treated as taxable income.
“My mistakes were unintentional,” Mr Daschle said, adding that he “disclosed this information to the committee voluntarily, and paid the taxes and any interest owed promptly.”