Analysis of the financial impact of NHIAs with many policy objectives, the means of financing of any project is of utmost importance. The preliminary funding mechanism for the NHI, as suggested by the African National Congress (2010) (Treasury, 2011), consisted of general taxation, primarily through the means of a specific tax. Tax earmarking according to Cordes et al., (2005: p.89) refers to the earmarking of a tax revenue stream for a specific spending purpose (Cordes, et al., 2005). In the context of the NHI, this implies that all individuals should be taxed above what they currently pay. In the Econex healthcare reform note by (Theron, 2011)Theron (2011: p.1), a discussion is conducted on the ANC's proposal to use a specific tax to finance the additional expenditure required for the NHI. The article discussed two main ideas. The first idea mainly discussed that the use of earmarked taxes is a weak argument regarding funding the NHI. According to Theron (2011: p.1), (Theron, 2011) specific taxes are reserved exclusively for specific programs or projects. The article also states that earmarked taxes reduce the flexibility of government spending as overall economic performance fluctuates with the firm