Loans Versus Taxes in Defense Financing

expenditures is, in a sense, academic, for Congress has already gone a long way toward a final decision in favor of the loan method. To be sure, there were two revenue measures enacted in 1940, but the revenue to be anticipated from these acts will not suffice to balance the predefense budget unless a far different policy is to be taken toward nonessential expenditures than has thus far been manifested. Notwithstanding the camouflage that was attempted in the First Revenue Act, to the effect that the tax increases in this Act were for defense, the fact remains that there has been, to date, no actual taxation for the defense program, nor can there be such taxation until the predefense deficit has been eliminated

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