Policy brainstorming…
What will an Islamic government’s economic policy look like? This will depend on the particular conditions within a given society, but it seems to me that it should aim to reduce the gap between rich and poor in the country; taxes should be sufficient to subsidize major social welfare programs; and it should encourage greater circulation of the currency in the market, and discourage excessive private accumulation of wealth, and indulgence in luxury.
It is important to economic growth for more people to have more money, not fewer. What governments in the West tend to do is favor the rich with tax relief and access to credit, claiming that the rich create jobs; but what actually happens is that these policies simply help the rich get richer.
It seems to me that there would be a better way to improve corporate profits and simultaneously encourage job creation. Subsidize consumer activity. Either through tax credits or vouchers, the government could literally pay people to shop, rather than pouring money into corporate accounts without stimulating any industrial activity. Subsidized shopping would increase demand for goods, which would stimulate the need for increased manufacturing capacity; i.e. create jobs. This is the best way to subsidize business; not tax breaks or easy credit.
If corporate tax is high, the government could use this revenue to subsidize consumer activity, boosting both demand in the market and thus corporate profitability.