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WASHINGTON, April 5 (Reuters): US Treasury Secretary John Snow yesterday described high energy prices as "extraordinarily unwelcome" and said they will take a toll on the economy's generally positive performance.
Speaking to the Tax Executives Institute, the Treasury chief said the US economy was growing but that costlier energy would have the same negative effect as higher taxes.
Oil prices have hit new heights in recent days and were over $57 a barrel Monday. A leading Wall Street firm warned last week there was a possibility for a sharp spike in oil prices that could take them as high as $105 a barrel, a prediction that rattled energy markets.
However, "These energy prices are certainly going to take some toll, some effect, on the economic outlook. I do think the economy is strong ... that we'll push through this," he said.
Answering questions on other topics, Snow said President George W. Bush wanted a significant overhaul of the nation's tax system that is regarded by many as overly complex. "The president is looking for a big tax package, a far-reaching tax package ... that gets at the heart of that complexity."
Snow said the major push for legislative approval of a tax reform package, comparable in scope to the last major reform in 1986, would not come until next year. He said the Bush administration still wants to complete an overhaul of the nation's Social Security retirement program this year.
He said younger workers need a chance to earn higher returns by investing their private account savings so that they could be more prosperous in retirement, though they could also lose their investments.
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