Forum Post: Islamic finance
Posted 13 years ago on Oct. 17, 2011, 3:03 a.m. EST by skashland
(5)
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Just wondering what people think of this, and correct me if I'm wrong on the details, but here's how economic equity is supposed to be done in Islam: 2.5% tax on wealth (savings, homes owned, cars owned, gold, investments, pensions, etc.). One calculates his/her wealth after they subtract debt. If your debt exceeds your wealth, you don't owe anything. All that money supposedly goes to charity or public services.
Also charging or earning interest is supposed to be forbidden because it is imaginary money and you are not exchanging good or services. It is either an inconvenience fee or a reward for having money and thus unethical.
Ideas?
Hello, it is true at some extent. Please notice that Economics and Finance in Islam have a vast literatures and their applicability should be through its global system that is the Caliphate State, applying Islam in our whole life. Somehow logical ;-) could you install a rolls-royce replacement part in a Pontiac car, and functions as expected?! Here is a short document, written in 2008 diagnozing in 10 points the world economic crisis and presenting in 10 points how Islam could face and solve it: http://www.archive.org/download/VisionEconomiqueDeHizbUt-tahrirdr.Jabari/VisionEconomiqueDeHizbUt-tahrirdr.Jabari.pdf This article is in French, but you can consult the "Economic System in Islam" of Hizb ut-Tahrir (Liberation Party), a pan-Islamic political party stuggling to implement it in the Caliphate State (For Muslims, it is a question of faith: It is imminent!) http://www.hizb-ut-tahrir.org/PDF/EN/en_books_pdf/economic_system.pdf And feel free to take contact with the media office of Hizb ut-Tahrir America at: hizb-america.org You could as well contact the central media office at: hizb-ut-tahrir.info. You could find the whole Islamic systemic books intended to be implemented in the Caliphate State at: hizb-ut-tahrir.org in different languages. Kind regards
that seems like a good idea to tax wealth. that's what the death tax was, effectively. this prevents infinite accumulation of wealth.
Dont we already have taxes for the same reason? Taxes are supposed to be used for providing essential services.
I'm wondering about what people think of taxing wealth, not income, and limiting the amount of interest being charged and earned
Taxing wealth is taxing the same thing multiple times. Its not fair. What is the reason to tax wealth?
Personal wealth should not be taxed, but inherited wealth should be taxed equal to income. Returns on investments such as dividend payments should be taxed equal to income. Business profits should not be taxed. Idle capital held by businesses should be taxed. All taxes should be progressive. All taxes should be aimed at stimulating economic growth and coercing a certain amount of profits to trickle down, which they rarely do on their own.