Health & Taxes

Only a few short months ago, Barack Obama was elected President of the United States of America. Supporters rejoiced, “Yes we did!” Shortly after that historic event, then President-elect Obama announced his nomination of former senator Tom Daschle to be his secretary of health and human services. Advocates of universal health care reform were ecstatic.

With the release of Critical: What We Can Do About the Health-Care Crisis and his nomination for U.S. Secretary of Health and Human Services, it seemed that Tom Daschle was the solution to all of our nation's health care woes: a fragmented and inefficient patchwork of public and private payors, rising costs, too many government ties to the private sector, and a lack of uniformity on the proper spelling of “health care."

Yet it appears that that dream is over: Daschle announced today that he is withdrawing his nomination for Secretary of Health and Human Services. CNN.com reports that, in announcing his withdrawal, Daschle said:

“[I]f 30 years of exposure to the challenges inherent in our system has taught me anything, it has taught me that this work will require a leader who can operate with the full faith of Congress and the American people, and without distraction."

The president said Tuesday he accepts Daschle's decision "with sadness and regret," according to CNN.com.

Daschle’s withdrawal comes just hours after a New York Times editorial was published calling for him to step down. Citing Daschle’s “failure to pay substantial taxes that were owed and his sizable income from health-related companies while he worked in the private sector, “ The Times stated its belief that:

“Mr. Daschle ought to step aside and let the president choose a less-blemished successor.”

The Times furthered its demand, stating:

“Mr. Daschle’s financial ties to major players in the health care industry may prove to be even more troublesome as health reform efforts proceed. Like many former power players in Washington, Mr. Daschle cashed in on his political savvy and influence to earn $5 million in recent years, including more than $2 million from Alston & Bird, a law and lobbying firm; more than $2 million from the private equity firm, InterMedia Advisors, which provided the car and driver; and hundreds of thousands of dollars for speeches to interest groups, including those representing health insurance plans, medical equipment distributors and pharmacy boards.”

and

“Although Mr. Daschle was not a registered lobbyist, he offered policy advice to the UnitedHealth Group, a huge insurance conglomerate. He was also a trustee of the Mayo Clinic in Minnesota, on whose behalf he voiced opposition to a federal loan for a freight rail line near the clinic’s headquarters in Rochester, Minn.”

White House press secretary Robert Gibbs said on Tuesday that while the president is disappointed at Daschle's withdrawal, the issue of health reform is “bigger than any one person.” Gibbs stated that the Obama administration has set the bar for ethics “higher than any administration in the history of the United States.”

News of Daschle's withdrawal is sure to bring criticism to President Obama for his cabinet choices, especially in light of the recent controversy surrounding Timothy Geithner's failure to pay taxes.