The poorest fifth of Americans would receive 1 percent of the House reconciliation bill's net tax cuts in 2026 while the richest fifth of Americans would receive two-thirds of the tax cuts. The richest 5 percent alone would receive a little less than half of the net tax cuts that year.

Both the House and Senate versions are structured as deductions, not full exclusions of tips from taxable income. So, workers would still report their tips and claim the deduction when filing their taxes, rather than having tips automatically excluded from taxable income.

The massive budget bill passed by the House includes new tax breaks for tipped workers and those who get overtime.

Senators raised questions but passed the bill to cut the state's top tax rate to 4.5% and eliminate three tax brackets.

The U.S. Senate unanimously passed the "No Tax on Tips Act," a bipartisan bill that would exempt up to $25,000 in cash and non-cash tips from federal income taxes for eligible workers.

Seniors are unlikely to get a break on paying taxes on their Social Security benefits, an issue that impacts more people each year.

Gov. Kim Reynolds said she is focusing on reducing property taxes as she prepares for the final legislative session before her term ends.