In this Dec. 11, 2008 file photo, President Obama stands with former Senate Majority Leader Tom Daschle at a news conference in Chicago. (AP Photo)

Tom Daschle has withdrawn his nomination for health and human services secretary, after fielding mounting criticism over his failure to pay more than $130,000 in taxes.

President Obama stood by Daschle Monday, telling reporters that he “absolutely” supports the former South Dakota senator. But the president accepted Daschle’s withdrawal with “sadness and regret” Tuesday morning, according to a White House statement.

“Tom made a mistake, which he has openly acknowledged. He has not excused it, nor do I,” Obama said. “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.”

Obama said he had hoped Daschle could bring his expertise on health care to his drive to make health care more accessible and affordable.

But Daschle said in a statement that his presence would have complicated that effort.

“If 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,” Daschle said. “Right now, I am not that leader, and will not be a distraction.”

“I will not be the architect of America’s health system reform, but I remain one of its more fervent supporters,” he said.

It was unclear whether Daschle, with his deep network of ties in the Senate stemming in part from his time as majority leader, would have been able to weather the criticism over his tax problems in confirmation.

Senators were reluctant to state publicly any opposition to Daschle’s nomination in recent days. But that started to crack Tuesday morning, as Republican Sen. Jim DeMint called for Obama to withdraw the nomination — becoming the first senator to say that the former majority leader’s tax problems are disqualifying.

DeMint told FOX News that Daschle’s failure to pay $134,000 in federal taxes reflects a “problem with integrity” that the government cannot afford to tolerate. DeMint spoke out against Daschle as a number of prominent newspapers, including The New York Times, called for the South Dakota Democrat to drop his bid.

DeMint said he came to that conclusion after it became “obvious” that Daschle knew about the tax problems long before his nomination and did nothing to make it right.

“The average American would likely face criminal charges with tax evasion of this size, yet he did not address the issue until he was nominated,” he said.

Daschle has since paid $146,000 in back payments and interest, and apologized on Monday for what he called income tax errors.

The New York Times, in its editorial, complained that Timothy Geithner was already confirmed as treasury secretary despite his tax problems.

“It would send a terrible message to the public if we ignore the failure of yet another high-level nominee to comply with the tax laws,” the Times wrote.

Several other newspapers, including the Chicago Tribune, Philadelphia Inquirer, Boston Globe, and Pittsburgh Post-Gazette, also have called for Daschle to withdraw.

But Democratic Sen. Chuck Schumer earlier said Daschle’s own admission that he had failed to pay the taxes was reason enough to forgive his sin.

“Clearly it was a bad mistake, and Daschle was the first to come up with this in June 2008,” Schumer said. “It wasn’t discovered by the administration’s vetting team but rather by Daschle himself much earlier and he brought it to the attention of the administration’s vetting team when he was chosen as a potential nominee for HHS.”

Obama’s pick to be the White House’s first performance officer, Nancy Killefer, also withdrew her nomination on Tuesday because of her own tax liabilities, namely a $946 tax lien imposed by the D.C. government for failure to pay $298 in unemployment compensation tax on household help.

Noting the importance of the post, Killefer wrote in her withdrawal letter to the president that “my personal tax issue of D.C. unemployment tax could be used to create exactly the kind of distraction and delay those duties must avoid.”

President-elect Barack Obama announced as expected that Hillary Clinton would be his top diplomat and Robert Gates would stay on as defense secretary.

President-elect Barack Obama on Monday officially introduced the members of his national security team, including former Democratic primary rival Hillary Clinton as his secretary of state and Robert Gates, who will be remain as defense secretary.

Obama also announced that retired Marine Gen. James L. Jones — a former top commander of NATO and U.S. forces in Europe — would be his national security adviser.

President-elect Obama stands with Secretary of State-designate Sen. Hillary Clinton -- calling her nomination 'a sign to friend and foe.'

“I am confident that this is the team that we need to make a new beginning for American national security,” Obama told reporters during a morning news conference in Chicago.

Obama’s team will advise him on foreign and national security issues in an era marked by wars in Iraq and Afghanistan and terrorism around the globe. Obama takes office Jan. 20.

Obama said his team “must pursue a new strategy that skillfully uses, balances, and integrates all elements of American power: our military and diplomacy, our intelligence and law enforcement, our economy and the power of our moral example.

“The team that we have assembled here today is uniquely suited to do just that,” he added as his Cabinet picks stood behind him on a flag-draped stage. “They share my pragmatism about the use of power, and my sense of purpose about America’s role as a leader in the world.”

Obama named Washington lawyer Eric Holder as attorney general and Arizona Gov. Janet Naploitano as homeland security chief. He also named two senior foreign policy positions outside the Cabinet, including campaign foreign policy adviser Susan Rice as U.N. ambassador.

Obama introduced Clinton first, saying of his former presidential rival, “She possesses an extraordinary intelligence and toughness, and a remarkable work ethic. … She is an American of tremendous stature who will have my complete confidence, who knows many of the world’s leaders, who will command respect in every capital, and who will clearly have the ability to advance our interests around the world.”

Clinton will give up her seat as a senator from New York to join the Obama Cabinet. Her appointment was preceded by lengthy negotiations involving her husband, the former president, whose international business connections posed potential conflicts of interest.

The former president also agreed to disclose the donors to the foundation that built his library, as well as contributors to his international foundation.

She said to Obama, in brief turn at the lectern, “Mr. President-Elect, I am proud to join you on what will be a difficult and exciting adventure in this new century.”

Sen. Clinton had scarcely finished speaking when her husband issued a written statement.

“She is the right person for the job of helping to restore America’s image abroad, end the war in Iraq, advance peace and increase our security, by building a future for our children with more partners and fewer adversaries, one of shared responsibilities and opportunities,” he said.

Gates said he was “mindful that we are engaged in two wars and face other serious challenges at home and around the world.”

“I must do my duty as they do theirs,” he said of the men and women in uniform in Iraq, Afghanistan and elsewhere. “How could I do otherwise?”

He said he was “honored to serve President-elect Obama.”

Gates’ appointment fulfilled a campaign promise by Obama, the naming of a Republican to his Cabinet.

Obama said Napolitano understands the need to protect against terror attacks and to respond to natural disasters — and that she also understands as well as anyone the danger of unsecured borders.

Obama now has half of the 15-member Cabinet assembled less than a month after the election, including the most prominent positions at State, Justice, Treasury and Defense.

The Associated Press contributed to this report.

Read more at http://www.foxnews.com/politics/2008/12/01/obama-unveils-national-security-team/

President-elect to formally unveil his team of economic experts to battle the most severe U.S. financial crisis in eight decades

WASHINGTON – President-elect Barack Obama names his economic team Monday and may call for the next Congress to quickly pass a massive stimulus plan that would dwarf even his campaign proposals to salvage the country’s financial wreckage.

Timothy Geithner, left, and Larry Summers (AP Photo).

Obama speaks at a Chicago news conference against a backdrop of increasing calls for him to assert himself well before he takes office Jan. 20 in the midst of the most severe U.S. financial crisis in eight decades.

Obama senior adviser David Axelrod confirmed that the president-elect would name Timothy Geithner, the New York Federal Reserve president, as his treasury secretary. Wall Street stocks jumped on Friday when word of Geithner’s appointment began to leak. Geithner will team with Lawrence Summers, a treasury secretary under former President Bill Clinton and former Harvard University president, who will take over the National Economic Council. Both Geithner and Summers will appear with Obama at a Monday news conference in Chicago.

Democratic officials also said Obama plans to name New Mexico Gov. Bill Richardson as commerce secretary, adding a prominent Hispanic and one-time Democratic presidential rival to his Cabinet. Richardson served as U.N. ambassador in the Clinton administration and later as energy secretary.

The troika will confront an economic crisis that continues to deepen in spite of hundreds of billions of dollars in federal emergency spending in recent weeks.

Top aides said Sunday that Obama also wants Congress to use its large Democratic majority when it convenes Jan. 6 to prepare tax cuts for low- and middle-income earners as part of the massive government intervention designed to pull the country out of its frightening economic nosedive.

Some economists have endorsed spending up to $600 billion to revive the economy. Sen. Charles Schumer, a New York Democrat, and former labor Secretary Robert Reich, a member of Obama’s economic advisory board, both suggested $500 billion to $700 billion. Before winning the presidency Nov. 4, Obama had said he looked to create a $175 billion stimulus package. While the new plan will be significantly larger, it was expected to incorporate his campaign other ideas for new jobs in environmentally friendly technologies and tax cuts.

“I don’t know what the number is going to be, but it’s going to be a big number,” Obama economic adviser Austan Goolsbee said on Sunday. “It has to be. The point is to, kind of, get people back on track and startle the thing into submission.”

Over the weekend Obama directed his team to erect plan to create 2.5 million new jobs by the end of 2010, and aides said his broader economic program was designed to quickly offer tax relief to lower- and middle-income earners. Significantly the plan would not offer an immediate tax increase on wealthy taxpayers. During the campaign, Obama said he would raise taxes on people making more than $250,000.

Axelrod unambiguously voiced Obama’s overall expectations.

“Our hope is that the new Congress begins work on this as soon as they take office in early January, because we don’t have time to waste here, ” he said on Sunday. “We want to hit the ground running on January 20th.”

Congress will have two weeks to hold hearings and write legislation between its return to Washington in early January and Obama’s inauguration.

Rep. Steny Hoyer of Maryland, the second-ranking Democrat in the House of Representatives, acknowledged a readiness for quick action.

“We expect to have during the first couple of weeks of January a package for the president’s consideration when he takes office.”

Axelrod also warned executives of the U.S. auto industry to draw up plans to retool and restructure their industry if they want the billions of dollars they are seeking from Congress. Otherwise, Axelrod said, “there is very little taxpayers can do to help them.”

Obama also delved into one of the most pressing foreign policy issues facing his presidency, calling Afghan President Hamid Karzai by telephone and telling him that fighting terrorism there and in the region would be a top priority, Karzai’s office said on Sunday.

The Saturday conversation between Obama and Karzai was the first reported contact between the two leaders since the Nov. 4 U.S. election. The United States has some 32,000 American troops in Afghanistan, a number that will be increased by thousands next year.

Fighting terrorism and the insurgency “in Afghanistan, the region and the world is a top priority,” Karzai’s office quoted Obama as saying during the conversation.

Read more at http://www.foxnews.com/politics/2008/11/24/obama-set-unveil-new-economic-team/

Change to the WhiteHouse and Washington?  Not this term….

In his first television interview since his historic election, President-elect Barack Obama said he will do “whatever it takes” to stabilize the economy, restore consumer confidence and create jobs to getting sound health care and energy policies through Congress, and developing a national security team is priority one.

WASHINGTON — President-elect Barack Obama said that selecting his national security team is a top priority.

“I think it’s important to get a national security team in place because transition periods are potentially times of vulnerability to a terrorist attack,” Obama told CBS’ “60 Minutes” in an interview broadcast Sunday. “We want to make sure that there is as seamless a transition on national security as possible.”

Sunday: Barack and Michelle Obama are interviewed on '60 Minutes' in First Interview Since Election (AP Photo).

In his first television interview since his historic election, Obama said he has spent the days since the election from doing “whatever it takes” to stabilize the economy, restore consumer confidence and create jobs to getting sound health care and energy policies through Congress.
The president-elect also said that as soon as he takes office he will work with his security team and the military to draw down U.S. troops in Iraq, shore up Afghanistan and “stamp out Al Qaeda once and for all.”

While investors are still riding a rollercoaster on Wall Street, Obama said the economy would have deteriorated even more without the $700 billion bank bailout. Re-regulation is a legislative priority, he said, not to crush “the entrepreneurial spirit and risk-taking of American capitalism” but to “restore a sense of balance.”

“There’s no doubt that we have not been able yet to reset the confidence in the financial markets and in the consumer markets and among businesses that allow the economy to move forward in a strong way,” Obama said. “And my job as president is going to be to make sure that we restore that confidence.”

Obama comes to the Oval Office with an ambitious list of campaign promises that will require Capitol Hill’s cooperation and approval, and the team he has been announcing in recent days is heavy on the legislative experience that Obama is lacking.

Obama resigned his Illinois Senate seat Sunday after just under four years of service, half of which he spent out on the presidential campaign trail.

During the campaign, Obama had Pete Rouse as his Senate chief of staff to take care of his business on Capitol Hill. On Sunday, Obama named Rouse to be a senior adviser in his White House. Rouse has 24 years of experience as a top Senate aide, also running the offices of former Senate Democratic leader Tom Daschle of South Dakota and Obama’s Illinois colleague, Democrat Sen. Dick Durbin.

Other names that have begun to roll out recently come with varying degrees of Washington experience. Obama is drawing on accomplished Chicago friends, longtime congressional aides and former Clinton administration officials, including some with ties to the Monica Lewinsky scandal.

The new chief of staff, Rep. Rahm Emanuel, combines the Chicago roots and the legislative connections. Vice President-elect Joe Biden’s chief of staff Ron Klain held the same role for Vice President Al Gore.

Obama has picked Mona Sutphen and Jim Messina as his deputy chiefs of staff. Like Rouse, Messina has served as chief of staff for three different lawmakers and has a vast network of relationships to show for it that he can tap on Obama’s behalf.

Philip Schiliro, who has more than 25 years experience working for Congress, is Obama’s liaison to Capitol Hill.

Biden, a longtime senator from Delaware, has said he intends to be a frequent voice on the Hill and use his 36 years of experience as a lawmaker to promote the administration’s agenda. That’s a departure from Vice President Dick Cheney, who only appeared occasionally on the Hill to meet with Republican members and cast a tie-breaking vote.

In the CBS interview, Obama also said Americans shouldn’t worry about the federal deficit for the next couple of years.

“The most important thing is that we avoid a deepening recession,” he said.

He said there hadn’t been enough done to address the plight of homeowners facing foreclosure.
“We’ve gotta set up a negotiation between banks and borrowers so that people can stay in their homes,” Obama said.

The president-elect also urged help for the auto industry.

Obama also confirmed reports that he intends to close the detention center at Guantanamo Bay, and “make sure we don’t torture” as “part and parcel of an effort to regain America’s moral stature in the world.”

Obama also said he plans to put Al Qaeda leader Usama bin Laden in the crosshairs.

“I think capturing or killing bin Laden is a critical aspect of stamping out Al Qaeda,” Obama said. “He is not just a symbol, he’s also the operational leader of an organization that is planning attacks against U.S. targets.”

Read more at : http://elections.foxnews.com/2008/11/16/security-economy-precedence-obama-tells-cbs/