"I think we will recognise this law is just one step in the broader effort to strengthen our economy and broaden our opportunities for everybody. The fact is the deficit is still too high and we are still investing too little in the things we need for the economy to grow as fast as they should."

 

　　The House of Representatives adopted the bill on a 257-167 vote.

 

　　The measure averts income tax increases for more than 98-percent of Americans, while allowing rates to go up for the wealthiest earning over 400-thousand US dollars.

 

　　The new law also delays 24-billion-US-dollars worth of automatic spending cuts for two months.

 

　　Asian markets have responded positively to the new law.

 

　　Hong Kong's Hang Seng, South Korea's KOSPI and Australia's ASX 200 all gained over 1-percent.

 

　　President Obama has now returned to Hawaii for his interrupted Christmas holiday.

 

　　When he returns, he'll face a new round of fight with Republicans in Congress over deficit, taxes and government spending.

 

　　With the Treasury expected to need an expansion in borrowing authority by early spring, and funding authority for most government programs set to expire in late March, Republicans have made it clear they intend to use those events as leverage with the administration to win savings from the Medicare health care program for the elderly and other government benefit programs.

 

　　Obama admitted that changes to the Medicare programme would have to be introduced.

 

　　"I agree with Democrats and Republicans the ageing population and the rising cost of health care makes Medicare the biggest contributor to our deficit. I believe we have got to find ways to reform that programme without hurting seniors."

 

　　Obama stressed that he would seek new tax revenue in any future deal.

 

　　He also said that he would not offer Congress spending cuts in return for lifting the government's borrowing limit, known as the debt ceiling.

 

　　A failure to raise the limit prevents the Treasury from borrowing more to pay its bills and could result in U.S default.

 

　　Obama admitted the upcoming fight would be "catastrophic" for the global economy.

 

　　"If Congress refuses to give the United States government the ability to pay these bills on time the consequences for the entire global community would be catastrophic -- far worse than the impact of the fiscal cliff."