[timerol]

For a good example of this, see Social Security (OASDI) in the US. The funding method is very regressive, taking a flat percentage of income only under a threshold (12.4% of income under $137,700 with half paid by employer and half paid by employee). People who make more than that pay less tax.

But then we use the tax to directly fund one of the most progressive programs in the US, which directly pays people who need it most.

I think most people would think of Social Security as a net progressive policy, even though it has a very regressive funding model.