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Disclaimer: This transcript is an accurate representation of the conversation, but it is not an exact verbatim record. Some pauses, repetitions, and filler words have been removed for clarity.
Tracy Ellis:
Welcome to The Elephant in the Dome, the official podcast of the Washington State Senate Republican Caucus. I’m Tracy Ellis with Senate Republican Leader John Braun. The 2026 legislative session is about to get underway — we’re recording this the Wednesday before session starts on Monday. And there’s a lot to talk about.
One issue getting national attention is daycare fraud, and it’s now coming up here in Washington. Senator Braun, can you explain what’s going on?
Sen. John Braun:
In states like Minnesota, Ohio, and Colorado, there have been reports of daycares receiving state and federal money without actually providing daycare. These cases aren’t fully investigated yet, but the numbers suggest something similar may be happening here in Washington.
Many of the daycares in question are home‑based with no visible signs of operation. That doesn’t prove anything, but it raises credible concerns. When people look at the data, it certainly appears there might be a problem — and we should investigate. That doesn’t mean anyone is guilty. This is the United States; you’re innocent until proven otherwise. But we owe it to taxpayers to determine whether fraud exists, stop it if it does, or reassure the public if it doesn’t.
What frustrates me is the response from some of my colleagues who say, “Don’t look here,” and try to cast aspersions on people asking reasonable questions. Our job is to look into it professionally and report back.
Tracy Ellis:
I’ve heard there’s legislation that might make it harder to investigate possible daycare fraud.
Sen. John Braun:
Yes. Right after this issue hit the media, a member of the majority dropped a bill that would shield people in this area from disclosure or transparency. That’s the wrong direction. If there’s wrongdoing, it should be investigated. If there isn’t, we should share that too. Government’s mission should be to build trust, not hide information.
Tracy Ellis:
You’ve long pushed for fewer regulations on daycares. You’re not asking for more rules — just an investigation, right?
Sen. John Braun:
Exactly. Providers tell me they’re inspected all the time, yet the data suggests some daycares aren’t being inspected at all. Maybe it’s a misunderstanding — but you don’t resolve misunderstandings by saying “don’t look.” You look into it.
People are angry. They work hard, pay taxes, and then hear that some may be defrauding the system. We saw massive fraud during the pandemic, and the state was slow to respond. This kind of thing erodes trust in government.
Tracy Ellis:
Some people are saying you’re racist for calling for an investigation. I didn’t hear anything about race in what you said. Can you explain that?
Sen. John Braun:
There have been media suggestions that certain ethnicities are more involved, but you didn’t hear that from me. I said if there’s credible evidence of misbehavior, we should investigate — regardless of race, religion, or creed. The law applies to everyone equally.
Tracy Ellis:
Let’s talk taxes. The governor says he supports an income tax in the future, and we’re hearing Democrats may propose one this session. What are you hearing?
Sen. John Braun:
We’ve heard they’re interested in passing an income tax. A graduated income tax has been ruled unconstitutional for nearly 100 years. Our constitution allows a flat 1% tax on property — and income is considered property — but not a graduated tax like the federal system.
They may try to call it an excise tax, like they did with the capital gains income tax, but that would make Washington the only state to do so. Voters have rejected an income tax 11 times. And just two years ago, the Legislature — including most Democrats — passed a bill banning an income tax. Now they want to reverse that. It’s hard to trust that.
Tracy Ellis:
A Democratic leader called that ban a “Mary Poppins piecrust promise.” Easy to make, easy to break.
Sen. John Braun:
That’s right. And that should concern voters. It suggests that even if they say a tax won’t affect you today, it might tomorrow. People are leaving high‑tax states for low‑tax states. Washington used to benefit from that, but since the capital gains tax passed, our net migration has dropped — even gone negative.
Tracy Ellis:
People didn’t move here from California because they love rain.
Sen. John Braun:
Exactly. We have a beautiful state, but affordability matters. And Washington has become less affordable — food, gas, housing, childcare, health care — all more expensive because of policies put in place by the majority.
Tracy Ellis:
The governor says he hopes voters get to weigh in on an income tax. But Democrats have used emergency clauses before to block referendums.
Sen. John Braun:
Right. An emergency clause makes a bill take effect immediately and prevents voters from challenging it through referendum. There’s no legitimate emergency here — nothing would take effect for years. If the governor truly wants voters to decide, he should oppose any emergency clause.
Tracy Ellis:
Let’s talk property taxes. You expect another push to raise the 1% cap?
Sen. John Braun:
Yes. Democrats have tried for three years to raise the cap from 1% to 3%. That sounds small, but because of compounding, it becomes a billion‑dollar tax increase within a decade. It’s deeply unpopular across party lines. I’m worried they’ll try to pass it early before the public is fully engaged.
Tracy Ellis:
The governor says he’d veto it — unless that’s another piecrust promise.
Sen. John Braun:
He said he wouldn’t raise taxes last year, then signed nearly $13 billion in new taxes. I hope he means it this time.
Tracy Ellis:
There’s also talk of expanding the B&O tax so counties can levy their own version.
Sen. John Braun:
Yes. Cities already can, and now counties may get that authority. It’s another way to take more money from citizens. Government should provide essential services, not grow endlessly.
Tracy Ellis:
And the income tax proposal could hit small businesses the same way B&O does?
Sen. John Braun:
Not exactly, but similar in effect. B&O taxes gross receipts, which hurts low‑margin businesses like grocery stores and car dealers. The proposed income tax would hit adjusted gross income — and for small businesses structured as LLCs or S‑corps, that income is taxed at the owner level even if the money stays in the business. Many small businesses reinvest their earnings and don’t actually take that money home. This tax could be devastating.
Washington already has the highest small‑business failure rate in the country. This would make it worse.
Tracy Ellis:
And we’re also below average in new business startups.
Sen. John Braun:
Yes. Washington used to attract entrepreneurs. Now they’re choosing states like Texas, Idaho, and Tennessee instead.
Tracy Ellis:
Do you think your dad would have started his ambulance‑building business here today?
Sen. John Braun:
No. We’re here because we grew here. But if we were deciding today, I don’t think we’d choose Washington.
Tracy Ellis:
That’s Senate Republican Leader John Braun. I’m Tracy Ellis. This is The Elephant in the Dome, the official podcast of the Washington State Senate Republican Caucus.
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