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          WORLD> America
          Obama hit by health nominee's withdrawal
          (Agencies)
          Updated: 2009-02-04 08:17

          He is trying to push through a nearly $900 billion stimulus package to revive a sagging economy.

          Although he got the backing of Obama and colleagues in the Democratic-controlled Senate on Monday, Daschle was hammered in newspaper editorial pages on Tuesday. Daschle has also faced questions over his earnings since he left the Senate.


          US President Barack Obama appears with Nancy Killefer, his appointee as White House Chief Performance Officer, January 7, 2009. [Agencies] 

          "Surely President Obama can find qualified people to serve in his cabinet who aren't hustling to write overdue checks to the IRS," the Philadelphia Inquirer said. "Daschle's error is too serious to ignore; it should disqualify him from serving in the cabinet."

          Some of Daschle's Senate colleagues were caught off guard by his decision but said it would not have a longterm impact on healthcare reform efforts.

          "It doesn't change the imperative of healthcare reform, it doesn't change the president's fundamental approach, and it doesn't change the president's ability to find somebody with enormous talent to get this job done," Massachusetts Senator John Kerry told reporters.

          Daschle Issue Grabs Spotlight

          The recurring tax embarrassments threatened to grab the spotlight as Obama pushes for rapid passage of an economic stimulus bill aimed at pulling the US economy out of its worst crisis in decades.

          The Senate was debating the stimulus proposal on Tuesday, but Republicans are putting up increasing resistance to Democratic proposals they say favor government spending over tax cuts to revive the economy.

          Obama on Tuesday nominated Senator Judd Gregg as commerce secretary, the third prominent Republican in his Cabinet, but avoided shouted questions about Killefer's withdrawal from her nomination.

          Gregg, 61, is the top Republican on the Senate Budget Committee. He could play a key role in selling Obama's stimulus package to skeptical members of his party.

          "Judd is a master of reaching across the aisle to get things done," Obama said at a White House ceremony.

          Gregg's nomination followed an earlier embarassment for Obama.

          He was named after New Mexico Gov. Bill Richardson, Obama's first choice for commerce secretary, withdrew in the face of a legal inquiry into a company that did business with the New Mexico state government. Richardson denied any wrongdoing.

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