Barack Obama signalled he was willing to compromise with Republicans – but refused to give ground on tax rises for the rich.

US president Barack Obama has said his re-election means Americans support his approach for avoiding a looming “fiscal cliff” that threatens a new recession - and that his approach means the country’s wealthiest people will have to pay more in taxes.

The US government’s deficit spending will surge to a record $1.5 trillion (€1.09 trillion) this year, congressional budget experts estimated, blaming the slow economic recovery and last month’s extension of Bush-era tax cuts.

WITH support from a lone Republican, a key Senate committee yesterday approved a middle-of-the-road healthcare plan that moves President Barack Obama’s goal of wider and affordable coverage a giant step closer to becoming law.

THE US federal government is in store for at least eight more years of budget deficits, including a record $480 billion shortfall in 2004, congressional budget, according to analysts.