preprints.org > arts and humanities > humanities > doi: 10.20944/preprints202211.0483.v1

Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Version 1 : Received: 24 November 2022 / Approved: 28 November 2022 / Online: 28 November 2022 (01:19:16 CET)

The paper draws attention and opens the debate on major societal issues that concern not only Muslims but human societies, at large, because of their profound implications, afflictions, and their present and future transitive dimensions. The paper discusses two major issues that have attracted a great deal of attention in the recent past: wealth and income disparities, and global indebtedness. Four remedies have stressed upon and/or proposed to eradicate and/or lessen some of the burdens of these problems have been thoroughly examined. These are: - Stripping commercial banks of their power to create money out of thin air (i.e., Ex Nihilo). Thus, reviving financial reform in line with the spirit of the call for the “Establishment of a National Bank [in England]” in the 1820s by the renowned British economist David Ricardo (1772-1823). The Bank of England was a private commercial entity at that time. - Prohibiting of ‘harmful’ speculation activities in financial and economic transactions and/or imposing hefty taxes on transactions relating to such activities. The implementation of such a policy requires and clear-cut distinction between the ‘harmful’ and ‘non-harmful’ speculative activities in financial and non-financial markets. - Levying adequate and fair taxes on the wealthiest upper class at the global scene. Calls for such a policy is on rise in the past few years. For instance, “Speakers at the European Development Days summit in Brussels, [in 2017], said that a just tax system should be “at the heart” of the development debate, and that more transparency is needed to ensure that companies pay their fair share. Tax avoidance schemes used by multinational companies, such as moving profits to tax havens, result in global losses of around $650 billion a year in tax receipts — with developing countries losing $200 billion, according to a study from the International Monetary Fund”, (Edwards, 2017; Crivello et al., 2015, p. 21) - Establishing a neutral legislative and tax regimes for different modes of financing. Thus, providing ‘a level playing field’ for equity and debt modes of financing due to the current biasness of the tax regimes to debt-based financing instruments as it has been documented in various studies carried out by the IMF, the European Commission, and other international prominent bodies.

monetary system; economic order; wealth and income inequalities; indebtedness; money creation; David Ricardo; tax biasness

Arts and Humanities, Humanities

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