Senate Democrats are advancing President Barack Obama's plan to cut every worker's payroll taxes in half next year paid for by a 3.25 percent tax surcharge on the very wealthy.

The failure of a special deficit-reduction supercommittee sets up a year-end battle between President Barack Obama and a dysfunctional Congress over renewing a payroll tax cut and jobless benefits for millions.

It's just about over for a special deficit-reduction supercommittee, which appears set to admit failure on Monday in its quest to sop up at least $1.2 trillion in government red ink over the coming decade.

Deadline nearing, the deficit-reduction talks in Congress sank toward gridlock Friday after supercommittee Democrats rejected a late Republican offer that included next-to-nothing in new tax revenue. Each side maneuvered to blame the other for a looming stalemate.

Increasingly gripped by stalemate, Republicans and Democrats on a congressional deficit-reduction supercommittee now seem to be devoting more time to assigning blame than working through the sharp differences that divide them.

The top Republican in the House says a recent proposal by GOP members of a special deficit committee is a "fair offer" despite criticism from conservatives who say it breaks the party's pledge on taxes.

The No. 2 Republican in the House said Monday he's still confident that a bipartisan deficit "supercommittee" will be able to reach agreement even though there's little more than a week to go before its deadline.

House GOP leaders have scheduled a vote next week on a constitutional amendment that would require a balanced federal budget.