Human Tax: A Concept Note on Technology-Substitutable Friction Costs

This concept note introduces Human Tax: the net incremental cost borne by an organization when humans perform tasks for which a technologically superior alternative exists, after accounting for transition costs and the residual value of human execution. Human Tax is analytically distinct from both transaction costs and agency costs, constituting a third category of organizational friction. This note establishes the formal definition, specifies the construct's scope through a tax-analogy framework (tax base, tax rate, and tax incidence), introduces a four-component measurement typology (speed, accuracy, cost, and consistency differentials), and articulates the boundary conditions under which the construct applies.