The move swiftly followed the revelation that tax arrears also prompted the resignation of another senior figure from his team – Nancy Killefer, Mr Obama's choice to fill a new job of chief performance officer.
The double blow came just a few days after Tim Geithner, his Treasury Secretary, was confirmed in his job in spite of strong Republican opposition after he disclosed that he had cleared more than $40,000 in back taxes only recently. Mr Obama accepted Mr Daschle's resignation with “sadness and regret”.
Mr Daschle, a former Senate majority leader, is a close friend of Mr Obama and was considered critical to the Obama administration's plans of pushing through universal healthcare insurance early into his first term.
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