Tom Daschle withdrew his nomination on Tuesday as President Obama’s nominee to lead the Health and Human Services Department, a decision that came one day after Mr. Obama declared that he would stand behind Mr. Daschle as problems over unpaid taxes were scrutinized on Capitol Hill.
“I accept his decision with sadness and regret,” Mr. Obama said in a statement.
The decision to withdraw his nomination as a member of the Obama cabinet comes as the White House battled across several fronts on Tuesday with tax problems of the president’s top political appointees. Mr. Daschle had expressed regret for not paying about $140,000 in back taxes, but on Monday vowed to press ahead.
The move came as a surprise on Capitol Hill, where Democratic senators had rallied behind Mr. Daschle. It is the highest-level political casualty of the young Obama administration.
“Now we must move forward,” Mr. Obama said in a statement.
Mr. Daschle, a former Senate Democratic leader who had been a political mentor to Mr. Obama and whose longtime aides now hold key positions in the White House, said he would not have been able to lead a reform of the nation’s health care system “with the full faith of Congress and the American people.”
“I am not that leader,” Mr. Daschle said, “and will not be a distraction.”
Bill Burton, a White House spokesman, said that Mr. Daschle also will step down from his position of White House health care czar, a post that did not need Senate confirmation.
The startling decision by Mr. Daschle marked the second top appointee by Mr. Obama to step down on Tuesday because of concerns over taxes.
Only a few hours earlier, the president’s chief White House performance officer withdrew her name from consideration after citing concerns over unpaid unemployment taxes in the District of Columbia. That nominee, Nancy Killefer, said her confirmation would create a “distraction” and delay the urgent agenda facing the administration.
The president accepted that withdrawal, but it was the news from Mr. Daschle that created a significant political ripple from the White House to Capitol Hill.
“Tom made a mistake, which he has openly acknowledged,” Mr. Obama said, speaking about Mr. Daschle, whom he is a close personal friend. “He has not excused it, nor do I. But that mistake and this decision cannot diminish the many contributions tom has made to this country.”
The moves came as Mr. Obama nominated Senator Judd Gregg, Republican of New Hampshire, to serve as commerce secretary. That position, the president had hoped, would be the last appointment he would need to make to his cabinet.
There was an added element of drama surrounding the surprising news of the withdrawal, which was announced jointly by the president and Mr. Daschle in a printed statement handed out to reporters at the White House. It was not immediately sent out electronically as all other communications from the White House are.
In five-paragraph statement, Mr. Obama said:
“This morning, Tom Daschle asked me to withdraw his nomination for Secretary of Health and Human Services. I accept his decision with sadness and regret.
“Tom Daschle has devoted his life to public service and health care reform, so that every American has access to health care they can afford. I had hoped that he could bring this passion and expertise to bear to finally achieve that goal, which is so essential to the progress of our economy and the well-being of businesses and families across our nation.
“Tom made a mistake, which he has openly acknowledged. He has not excused it, nor do I.
“But that mistake, and this decision, cannot diminish the many contributions Tom has made to this country, from his years in the military to his decades of public service.
“Now we must move forward, with our plan to lift this economy and put people back to work.”