Fight the unbeliever? Daniel discusses Sura 9:29

The verse that won't go away! Daniel discusses Sura 9:29 with Muslims.
Sura 9:29
Fight those who do not believe in Allah or in the Last Day and who do not consider unlawful what Allah and His Messenger have made unlawful and who do not adopt the religion of truth from those who were given the Scripture - [fight] until they give the jizyah willingly while they are humbled.
Ibn Kathir on Sura 9:29"
Therefore, when People of the Scriptures disbelieved in Muhammad they had no beneficial faith in any messenger or what the Messengers brought. Rather, they followed their religions because this conformed with their ideas, lusts and the ways of their forefathers, not because they are Allah’s Law and religion. Had they been true believers in the religions, that faith would have directed them to believe in Muhammad because all Prophets gave the good news of Muhammad’s advent and commanded them to obey and follow him. Yet when he was sent, they disbelieved in him, even thought he is the mightiest of all Messengers. Therefore, their claimed faith in an earlier Prophet will not benefit them because they disbelieved in the master, the mightiest, the last and most perfect of all Prophets. Hence Allah’s statement [our verse in question – 9:29].
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