BBC's Washington correspondent James Coomarasamy notes the withdrawal of two nominees in one day doesn't bode well for the new President's goals:

"[It] appears to reveal the extent to which Mr Obama's public calls for a new era of responsibility are being undermined by the growing number of his nominees facing tax problems."

In a Dallas Morning News blog, Todd Gillman offers advice to Cabinet nominees, with a hint of sarcasm:

"[I]f you want a cabinet post, and you haven't paid your taxes, try to get confirmed before all the other nominees who haven't paid all their taxes."

A Minneapolis Star Tribune reporter expresses outrage at the tax problems that have arisen among the three Cabinet nominees:

“We’re not talking about people who simply forgot to carry a one or placed a decimal where they shouldn't have … [W]e’re talking about… well-to-do individuals deciding tax laws don’t apply to them and, instead, choosing not to report hundreds of thousands of dollars of income and perks to the Internal Revenue Service (IRS).”

MSNBC reports Daschle is the third Cabinet nominee to face tax complications.

Early Tuesday, chief performance officer nominee Nancy Killefer withdrew her nomination amid controversy surrounding her failure to pay unemployment compensation taxes for a household employee.

The New York Times called Daschle's withdrawal the "highest level political casualty of the young Obama administration."

It also reports the new President hoped his Tuesday nomination of Judd Gregg as commerce secretary would be the last position he had to fill.

The Washington Post reports President Obama was "saddened" by the news of Daschle's decision to withdraw his nomination. In a statement, the President said:

"Tom made a mistake, which he has openly acknowledged. He has not excused it, nor do I. 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."

Washington Business Journal reports Killefer worked in the Treasury Department during the Clinton administration.

Her letter to President Obama Tuesday read, in part:

"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."