Do you think other forms or non-loan income should or should not also be exempt? E.g. events, vassal income, looting.
As long as it´s income, it should... Like the event for harvest succes or something, it applies as income in term, not sure if it´s in the ledger though.
Loot and vassals and I believe some events and their modifiers, like spice control mission, are all shown in the economy slide. I don´t believe loans when taken are shown here, they only show under expenses due to interest.
So what they should do, is not have it rely on every type of money going in, but basically take the number in the bottom of "income", which has war rep from other, pirateering and looting, vassal income and special modifiers. This means the war rep would be taken before any expenses and preventing loans from being equal to income, which it isn´t since it only makes expenses higher and due to inflation and interest really isn´t a great solution to get money fast and avoid war rep. Also since the war rep would be calculated due to income
before expenses, the higher expense due to loans would have no effect, the interests would then only hurt the taker, since he would have a smaller amount to spent during the loan.
So affecting any expenses, would only hurt target nation, the war rep will stay the same unless the income changes.