<p><br /> US President Barack Obama has signed into law a bill extending Bush-era tax cuts and said he hoped the bipartisan spirit that had made it possible would help restore America's faith in Washington.<br /> </p><p><br /> "We are here with some good news for the American people this holiday season. By a wide bipartisan margin both houses of Congress have passed a package of tax relief that will protect the middle class that will grow our economy and create jobs for the American people," he said at a White House ceremony.<br /> </p><p><br /> Obama brokered the tax deal with Republicans over the objections of many of his fellow Democrats. US lawmakers passed the $858 billion package of renewed tax cuts and more unemployment benefits near midnight.<br /> </p><p><br /> Obama defended the bill as the right thing to do for the country despite its flaws, calling it a "substantial victory for middle class families".<br /> </p><p><br /> He signaled it could be a blueprint for future cooperation that would make ordinary Americans feel better about their government.<br /> </p><p><br /> The bill is expected to provide at least a short-term boost to the US economy and reduce unemployment, which remains near 10 per cent. But it will also add to a $14 trillion national debt that some fear is nearing dangerous levels.<br /> </p>
