Republican Senator says wealthy healthcare tax "dead"

WASHINGTON (Reuters) - A Republican senator closely involved in writing healthcare reform legislation said on Wednesday he believes the House Democratic plan for a tax on the wealthy to pay for healthcare is "a dead issue" in the Senate.

Senator Orrin Hatch also told reporters he doubts the tax-writing Senate Finance Committee will be able to start work on a bill this week or next. The panel is seeking ways to pay for the expected $1 trillion cost of the bill.

"They tell me they are making progress," said Hatch, who is among a small group of lawmakers working with committee chairman Max Baucus on the effort. But asked if legislation could emerge this week or next he said "I personally doubt it."

(Reporting by Kim Dixon, Writing by Jackie Frank)