Jon Huntsman President 2012

FINANCIAL
REGULATORY REFORM

The US government should not encourage excessive risk-taking by big banks – this is absolutely not in the interest of anyone else in the economy.

END WALL STREET’S RELIANCE ON EXCESSIVE SHORT-TERM LEVERAGE

Governor Huntsman will end Wall Street’s reliance on short-term leverage to fund long-term holdings. The mismatch in maturities was at the core of much of the Panic of 2008, and it cannot be sustained. As president, Jon Huntsman will also implement tax reform that includes eliminating the deduction for interest payments that gives a preference to debt over equity, thus ending subsidies for excess leverage. The overall corporate tax burden will fall as part of these reforms – this is good for the nonfinancial sector and good for well-run smaller financial firms. But the subsidies to large, highly-leveraged financial firms will also be eliminated. The US government should not encourage excessive risk-taking by big banks – this is absolutely not in the interest of anyone else in the economy.

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