Article

Economic Substance and The Laws of Interest: A Comparison of Jewish and U.S. Federal Tax Law

Adam Chodorow

in The Oxford Handbook of Judaism and Economics

Published in print December 2010 | ISBN: 9780195398625
Published online September 2012 | | DOI: http://dx.doi.org/10.1093/oxfordhb/9780195398625.013.0025

Series: Oxford Handbooks

 Economic Substance and The Laws of Interest: A Comparison of Jewish and U.S. Federal Tax Law

More Like This

Show all results sharing these subjects:

  • Economics
  • Financial Markets
  • Industry Studies

GO

Show Summary Details

Preview

Both Jewish law and U.S. Federal tax law define interest broadly as a payment for the use of money. Nonetheless, the two systems diverge widely when determining whether particular transactions involve interest. This article compares the different approaches to the laws of interest found in these two systems, in an effort to reveal how underlying goals, practical constraints, and the structure of the legal system affects the development of the law. This article explains the laws of interest. The Torah mentions ribbit three times. The first occurs in Exodus the second mention is found in Leviticus and the final occurs in Deuteronomy. Moving forward this article explains the federal taxation of interest which says that interest is not banned under the federal tax laws, but it is often treated differently from other types of payments. A detailed analysis comparing the Jewish and the US approaches to interest concludes this article.

Keywords: Jewish law; Federal tax; law; legal system; Torah; ribbit; Exodus

Article.  10488 words. 

Subjects: Economics ; Financial Markets ; Industry Studies

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.