Define each of the following terms: (1) a progressive tax (2) a regressive tax D. E. Explain how restricting taxable income to wages and salaries (as opposed to including F. Explain how a tax credit equal to $500 per person affects the progressivity or regressivity G. The State is considering allowing each person to take a $100 exemption. If this interest and dividends) affects the progressivity or regressivity of the state's income tax of the state income tax. exemption is implemented, what will be the change (in dollars) in the amount of income tax that Mr. Jones owes