He was one of Barack Obama's earliest and most loyal supporters during the presidential campaign -- a former Senate majority leader, a major power in Washington, throwing his support behind a little-known, unlikely candidate for president all the way back in February of 2008.

But South Dakota's Tom Daschle did his candidate no favor when he neglected to tell President Obama's staff during their vetting process to nominate him as secretary of Health and Human Services that, oh, by the way, I neglected to pay, like, $146,000 in taxes. The back taxes included those on a luxury car and driver provided by Democratic businessman and Silicon Valley favorite Leo Hindery Jr.

Later today, Daschle faces what could be a grilling from his former colleagues on the Senate Finance Committee. In a letter to the committee he released this morning, Daschle said:

I am deeply embarrassed and disappointed by the errors that required me to amend my tax returns.... I apologize for the errors and profoundly regret that you have had to devote time to them.

The administration too is embarrassed that two of its top-level nominees -- Daschle and Treasury Secretary Timothy Geithner -- have confessed to failing to pay taxes. Especially in Daschle's case, when the taxes that were omitted turn out to be for use of a limousine and driver, leading critics on Fox News Sunday to suggest that Daschle is a limousine liberal who failed to pay his limousine taxes.

But Obama, asked today if he still backed the embattled Daschle, told reporters, "Absolutely."

Insiders doubt that any of this will derail the nomination. Daschle has stored up a lot of goodwill during his years on Capitol Hill. And Obama is riding the crest of a honeymoon of public support. Still, as Arizona Republican Jon Kyl said the other day, "I just wonder if President Bush had nominated these people, what folks would be saying about that."

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President-elect Barack Obama's economic stimulus plan will include an immediate tax cut for middle-class families, and the incoming administration hopes to enact permanent tax cuts soon thereafter, a senior adviser to Obama said Sunday.

David Axelrod said the stimulus package will be implemented soon, given the worsening economy, and could cost $675 billion to $775 billion. The massive recovery plan will seek to create or save 3 million jobs, he said in appearances Sunday on NBC's "Meet the Press" and CBS's "Face the Nation."

"Look, we feel it's important that middle-class people get some relief now," Axelrod said on "Meet the Press." Obama has "promised a middle-class tax cut," he added. "This package will include a portion of that tax cut that will become part of the permanent tax cut he'll have in his upcoming budget."

Giving people more spending money will "help get our economy going again," Axelrod said. He also said he is hopeful that the recovery plan will be ready for Obama to sign soon after his Jan. 20 inauguration. read more