Grand Rapids, MI -- (SBWIRE) -- 03/03/2011 -- Dennis Tubbergen is a financial advisor, advisor to financial advisors, author and radio talk show host. Tubbergen, who is CEO of USA Wealth Management LLC, a federally registered investment advisory company, has been talking about debt in the U.S. for months and believes President Obama’s recent claim that the federal government will help states that are struggling financially will not ultimately ‘help’ them.

Tubbergen refers to a February 8, 2011 article in The Washington Post which states in part that states which are struggling financially can get “immediate relief” through a plan that will temporarily suspend interest payments to the federal government from loans made to cover ever-rising unemployment benefits.

Why does Tubbergen see this as a problem?

Because beginning in 2014, the portion of workers’ wages subject to unemployment insurance tax that employers pay would more than double. According to the article, “This increase, from $7,000 to $15,000, would be aimed at raising revenue to repay the federal government.”

“The game of economic ‘kick the can’ continues,” explains Tubbergen. “By letting the states accrue the interest on the debt that they owe the federal government, the amount of money they owe to the federal government will increase, making the hole from which the states must climb out of that much deeper. Putting off for tomorrow what we should do today is a favorite theme of politicians and is the first play in their political playbook.”

Tubbergen believes the above proposal just adds more debt to an already bloated debt load.

“It compounds the problem and borrows against future business production by asking employers to double what they pay in unemployment taxes in 2014,” concludes Tubbergen. “It’s simply more spending today at the expense of tomorrow: the same approach that got us where we are today. We didn’t arrive at our current predicament quickly and we won’t solve the problem quickly. We certainly won’t solve it by adding more debt to a problem caused by excessive debt.”

Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in the USA Wealth Management Building in downtown Grand Rapids, Michigan. Tubbergen is CEO of USA Wealth Management, LLC and has an online blog that can be viewed at http://www.dennistubbergen.com. His weekly talk show The Everything Financial Radio Show is simulcast on two Michigan metro stations and also airs to over 600,000 financial advisors, with recent podcasts available at http://www.everythingfinancialradio.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.