Tax Issues Sink An Obama Nominee

While Senators grapple with the nomination of Tom Daschle and his over $200,000 in tax errors, the White House lost a lower level nominee today because of tax issues.

Nancy Killefer, who was to be the White House watchdog on budget waste and duplicative programs, took her name out of consideration for a post at the Office of Management and Budget.

She had failed to pay employment taxes on household help back in 2005, which resulted in a lien for over $900 being placed on her Washington, D.C. home.

It's not clear if there is more to this story than just that.  It has been reported that Killefer had two nannies and a personal assistant.

What follows is her letter to President Obama, released today by the White House.

February 3, 2009


Dear Mr. President,


I recognize that your agenda and the duties facing your Chief Performance Officer are urgent. I have also come to realize in the current environment 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. Because of this I must reluctantly ask you to withdraw my name from consideration.


I am deeply honored to have been selected by you and you have my deep appreciation for your confidence in me. You have my heartfelt support and best wishes for success in all your endeavors.


Respectfully yours,


Nancy Killefer


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