This study analyzes the finance methods used by the Truman Administration to finance America's military expansion during the Korean War. Research draws primarily on the papers of L. Laszlo Ecker-Racz, chairman of Truman's Tax Advisory Staff, and on other papers of the Truman Library. The Truman Administration used communist aggression in Korea to increase force levels in Korea and around the globe. The administration requested legislation capable of providing additional revenue to finance the build-up as it occurred. The administration also pressured European allies to contribute to the military expansion and absorb some of the cost by increasing European military force and defense production levels. The administration's failure to define its goals, and dissent regarding predicted budget deficits, undermined the Truman Administration's efforts to convince Congress to pass the full legislative program. However, the administration overestimated the revenues needed, allowing the modified tax program to finance most of the expansion.
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