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Disclaimer: This transcript is provided for accessibility and reference. It is not an exact verbatim record of the podcast and may contain edits for clarity.
Speaker 1 – Tracy Ellis:
It’s The Elephant in the Dome, the official podcast of the Washington State Senate Republican Caucus. I’m joined today by Laudan Espinoza and Senator John Braun. A group calling themselves socialist Democrats has introduced a new proposal — a jobs tax. Senator Braun, can you explain?
Speaker 2 – Sen. John Braun:
They call it a payroll tax, but in reality it’s an innovation tax — a jobs tax. It targets high‑paying jobs in Washington. The employer pays, not the employee. Seattle already has a similar tax, and we’ve seen tens of thousands of jobs move out of Seattle. Extending this statewide would be terrible for our economy and citizens.
Speaker 3 – Laudan Espinoza:
So they think cooperatives could replace Microsoft or Amazon if those companies left? That seems unrealistic.
Speaker 2 – Sen. John Braun:
Exactly. There’s no example anywhere of a cooperative replacing a company like Microsoft. Nonprofits already struggle to operate even with state support. Suggesting they could sustain our economy is nonsense.
Speaker 3 – Laudan Espinoza:
Right — what, they’ll take over the Redmond campus and run a commune?
Speaker 2 – Sen. John Braun:
And beyond that, Microsoft pays significant federal income tax, which supports services that flow back to Washington. A cooperative wouldn’t. It’s economic nonsense.
Speaker 3 – Laudan Espinoza:
The Washington Policy Center has pointed out that penalizing businesses undermines the state budget. We rely on those revenues for critical services.
Speaker 2 – Sen. John Braun:
That’s right. Even democratic socialist countries in Europe rely on private sector employers. Washington has thrived because of companies like Microsoft and Amazon. Undermining them risks our entire economy.
Speaker 1 – Tracy Ellis:
Progressive Democrats are also suggesting an income tax. Why is that a problem?
Speaker 2 – Sen. John Braun:
Washington voters have rejected income tax 13 times. Just last year, they reaffirmed “no income tax.” Yet Democrats keep pushing. Economically, it would drive businesses out of the state, making us uncompetitive nationally and globally.
Speaker 3 – Laudan Espinoza:
And after the huge tax increase in 2025, voters have little confidence more taxes would be managed responsibly.
Speaker 2 – Sen. John Braun:
Exactly. Spending has grown twice as fast as personal income. Instead of controlling spending, Democrats tax first. That drives people and businesses away.
Speaker 1 – Tracy Ellis:
There’s also talk of a wealth tax. Some say it wouldn’t affect them directly — why oppose it?
Speaker 2 – Sen. John Braun:
Because it discourages innovation. Washington has prospered thanks to entrepreneurs who built enterprises here. A wealth tax makes the state unattractive for investment, driving innovators elsewhere.
Speaker 3 – Laudan Espinoza:
Governor Ferguson recently said he wouldn’t sign property or sales tax increases. But he left the door open to other taxes.
Speaker 2 – Sen. John Braun:
He said something similar last year, then signed the largest tax increases in state history. I’m skeptical. And no one is talking about tax reductions — only new taxes.
Speaker 1 – Tracy Ellis:
Gas prices are another issue. Washington’s are among the highest in the nation.
Speaker 2 – Sen. John Braun:
Yes, about $1.30 higher than the national average. That hits families hard — hundreds of dollars a year. And it raises costs for food, housing, childcare, and healthcare because transportation affects everything.
Speaker 3 – Laudan Espinoza:
Even a Happy Meal costs nearly twice as much here compared to Alabama. Yet our services aren’t better — in fact, education outcomes lag behind states like Mississippi.
Speaker 2 – Sen. John Braun:
Exactly. We’re a high‑cost, low‑service state. Taxing more hasn’t delivered better results.
Speaker 1 – Tracy Ellis:
So as we head into the 2026 legislative session, these proposals are real and will be considered. Republicans will fight them, but Democrats hold the majority.
Speaker 2 – Sen. John Braun:
We’ll push back and make the case that Washington can’t afford tax‑first policies, regulatory overreach, or ideologically driven environmental mandates. We need thoughtful voices on both sides to recognize the harm these proposals would cause.
Speaker 1 – Tracy Ellis:
That’s all for today’s episode of The Elephant in the Dome, the official podcast of the Senate Republican Caucus. Thanks to Senator John Braun and Laudan Espinoza for joining me.