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A tax that is earmarked for a certain place means that the state legislature does not have to finance that operation. So, if this tax is destined for health care, the state legislature will simply reduce funding for health care by the amount collected.

You are generally correct. However, in this situation, KKT's intentions are even more insidious. The revenues from this proposed tax increase would be earmarked for vastly expanding health care. To quote from the article, " Their goal is to have Maryland be the model for government-run health care for the country." Nothing like good old-fashioned socialism.

Unfortunately, the Baltimore Sun is one of the publications we cannot post full-text articles from... but go read the rest of the article... the rest of it basically discusses the socialist health care issue.