In December 2017, the U.S. Congress passed the Tax Cuts and Jobs Act of 2017 (TCJA), which reduced the personal income tax rates for most earners. The old tax rates and the new tax rates are reported in the tables below.

Old Tax Rates Income Bracket New Tax Rates Income Bracket
10.00%  $0–$9,525                        10.0%  $0–$9,525
15.00%  $9,526–$38,700               12.0%  $9,526–$38,700
25.00%  $38,701–$93,700             22.0%  $38,701–$82,500
28.00%  $93,701–$195,450           24.0%  $82,501–$157,500
33.00%  $195,451–$424,950         32.0%  $157,501–$200,000
35.00%  $424,951–$426,700          35.0%  $200,001–$500,000
39.60%  $426,701 and up 37.0% $500,001 and up

Critics of the bill argued that it disproportionately benefited high-income people. Let’s see if that is true.

Suppose Amar’s taxable income is $50,000 (round your answers to two decimal places).

(a) Amar's average tax rate before TCJA:
%?

(b) Amar's average tax rate after TCJA:
%?
Part 2
Suppose Selena’s taxable income is $1,000,000 (round your answers to two decimal places).

(a) Selena's average tax rate before TCJA:
%?

(b) Selena's average tax rate after TCJA:
%?