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(CNN) — Former Sen. Tom Daschle has withdrawn his nomination as Health and Human Services secretary, according to a written statement from the White House.

Tom Daschle apologized for making mistakes on his tax records.

Daschle had been fighting to save his nomination following controversy over his tax records and questions over his work in a field that some consider lobbying.

President Obama’s administration was standing by his side and fellow Democrats lined up behind him but Daschle’s problems, coupled with other nominees’ issues, gave critics ammunition to question Obama’s call for a "new era of responsibility."

The president said Tuesday he accepts Daschle’s decision "with sadness and regret."

"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. Now we must move forward, with our plan to lift this economy and put people back to work," he said in a statment.

Daschle’s resignation followed by just hours Nancy Killefer’s withdrawing as Obama’s chief performance officer, a new post in President Obama’s administration.

Officials said privately the reason for the withdrawal was unspecified tax issues. The much-touted post was designed to scrub the federal budget.

The former Senate majority leader apologized Monday for failing to pay his taxes in full. He said earlier he was "deeply embarrassed" for a series of errors which include failing to report $15,000 in charitable donations, unreported car service levitra online and more than $80,000 in unreported income from consulting.

Daschle recently filed amended tax returns, and paid more than $140,000 in back taxes and interest for 2005-2007.

A New York Times editorial on Tuesday called for Daschle to withdraw.

The paper’s editorial board particularly took issue with the fact that Daschle said he identified the unpaid taxes last June, but did not pay them until he was nominated for the top post at the Department of Health and Human Services.

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The editorial also criticizes Daschle for generating a sizeable income from health-related industries while working in the private sector.

"Mr. Daschle is another in a long line of politicians who move cozily between government and industry. We don’t know that his buy cialis industry ties would influence his judgments on health issues, but they could potentially throw a cloud over health care reform," the editorial said.

Shortly after news of the tax quandary broke, a number of Democratic senators released statements expressing their support for Daschle, including Sen. John Kerry of Massachusetts, Sen. Charles Schumer of New York, Sen. Patrick Leahy of Vermont and Ted Kennedy of Massachusetts. In their opinions, Daschle identified the problem and corrected it.

Daschle’s supporters said that given his record of three decades of public service, Daschle was still the right man for the job.

"One cannot underestimate how widely admired Tom Daschle is in Washington for his integr

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