If you make a loan to someone, and do not charge (usury) interest, the IRS will impute an interest rate, and charge you tax on that income. For both Christians and Moslems, charging (usury) interest is a crime, a sin, because it does damage. (For Jews too, but they have an exception which allows them to charge non-Jews).
Certainly you are free in USA to not charge interest, but if your religion forbids you to do so, there is a tax upon you for exercising your religion. Say you loan $100,000 to someone, with no interest, as your religion requires. If the imputed interest is 5%, then your imputed income is $5000 per year. If your tax bracket is 30%, then you owe the Fed govt (not to mention the state) 30% of $5000 or $1500 each year, for making the loan.
In essence, in USA, you are taxed for following your religion.
Feel free to forward this by email to three of your friends.
Certainly you are free in USA to not charge interest, but if your religion forbids you to do so, there is a tax upon you for exercising your religion. Say you loan $100,000 to someone, with no interest, as your religion requires. If the imputed interest is 5%, then your imputed income is $5000 per year. If your tax bracket is 30%, then you owe the Fed govt (not to mention the state) 30% of $5000 or $1500 each year, for making the loan.
In essence, in USA, you are taxed for following your religion.
Feel free to forward this by email to three of your friends.
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