US President Barack Obama's pick to usher in healthcare reform was the latest cabinet nominee to face questions over his tax returns as the White House sought to downplay the revelation.
For over three years, Tom Daschle, Obama's choice to head the Department of Health and Human Services, did not pay more than 128,000 dollars in back taxes, along with 12,000 dollars in interest, US media reported Saturday.
The back taxes were due to unreported consulting income, questionable charitable contributions and his failure to report car and driver services provided by a wealthy friend.
The White House acknowledged in a statement Friday night that "some tax issues" had emerged during Daschle's nomination.
"In preparation for his nomination, Senator Daschle and his accountant identified some tax issues and fixed them," the White House said, adding that the money the former Senate Democratic leader owed to the US government had been paid, with interest.
The White House said "the president has confidence that Senator Daschle is the right person to lead the fight for health care reform," expressing confidence that he "will be confirmed."
Daschle is the second Obama cabinet nominee in as many weeks to face questions over taxes as the new president's initially smooth transition to power encounters some bumps in the road.
Timothy Geithner was confirmed as US Treasury secretary on January 26 despite his admitted failure to pay 34,000 dollars in taxes to the Internal Revenue Service -- an error he said he has rectified.
Obama's initial choice for commerce secretary, New Mexico Governor Bill Richardson, withdrew his name in early January amid an investigation into whether a financial company won lucrative contracts to advise his state government as a result of donations to the governor's campaign.
Obama also has yet to name the head of the Food and Drug Administration, an agency that would come under Daschle's control, in the wake of one of the largest food recalls in US history after a firm distributed salmonella-contaminated peanut butter products.
The White House said Friday that Obama will name a new FDA chief "in the next few days."
Time magazine reported that the Senate Finance Committee would hold a private meeting with Daschle Monday to discuss the delayed confirmation hearings.
Senator Ted Kennedy of Massachusetts meanwhile rushed to Daschle's defense Saturday.
"I look forward to working with him on the cause (of) my life: providing quality, affordable healthcare for all Americans," said the influential liberal lawmaker, who chairs the Senate Health, Education, Labor and Pensions Committee.
"Tom himself raised the issue and took all necessary steps to correct his innocent mistake months ago."
Daschle was forced to amend his tax returns and paid back taxes and interest on January 2 during the vetting process for his nomination that went before the committee just six days later, according to the committee's report on Daschle's confirmation cited by US media.
An administration official told The New York Times that the failure to pay the taxes had been "a stupid mistake" but should not derail the nomination. Daschle had been expected to easily win confirmation.
The controversy stems from a chauffeur service provided by Leo Hindery Jr., founder of private equity firm InterMedia Advisors, where Daschle was chairman of the advisory board after he lost his 2004 Senate re-election campaign, according to reports.
The car and driver were not part of Daschle's official compensation package from the company but he failed to declare the services on his income taxes from 2005 to 2007 as required by law, ABC News reported.
Obama's transition team "identified certain donations that did not qualify as charitable deductions because they were not paid to qualifying organizations" during the vetting process, according to the committee's report.
The reports helped explain the delays to Daschle's confirmation, which had been expected before Obama took office January 20.
A spokesperson for Daschle said "he deeply regretted his mistake," and that when he recognized his error "he corrected it rapidly."
