By Alex de Koning, September 14, 2025
In today’s world, our society faces a paradox: capitalism has brought unprecedented innovation and wealth, yet many corporations exploit human weaknesses to maximize profit, often harming consumers in the process. From addictive ultra-processed foods to attention-hijacking apps, the incentive structures built into modern capitalism frequently reward harm. It’s clear that the system needs an evolution.
I am proud to introduce the concept of the Harm Tax, a bold, practical, and fair approach to curbing corporate exploitation while keeping capitalism alive and thriving.
What is the Harm Tax?
Unlike traditional “sin taxes,” which raise prices for consumers on products like tobacco, alcohol, or sugary drinks, the Harm Tax targets the profits companies earn from harmful practices.
- Who pays: The corporation, not the consumer.
- What is taxed: Profit derived from products or services proven to harm human health, society, or the environment.
- Why it matters: Companies are incentivized to reformulate products, innovate responsibly, and reduce harmful practices because it directly impacts their bottom line.
This simple shift in focus—from punishing the consumer to holding companies accountable—addresses both fairness and effectiveness.
Why the Harm Tax is Unique
- Corporate Responsibility at the Core Traditional sin taxes rely on consumers to reduce demand, often penalizing those who are addicted or low-income. The Harm Tax places responsibility where it belongs: on the company profiting from harm.
- Aligns Profit with Positive Outcomes Companies remain profitable, but only if their practices are safe, ethical, and socially responsible. Harmful behavior becomes expensive, creating a natural incentive to innovate in the public interest.
- Broad Applicability The Harm Tax isn’t limited to food or tobacco. It can apply to social media platforms, tech companies, fossil fuels, and any industry where profit is made by exploiting human vulnerabilities or harming society.
- A Practical, Implementable Solution Governments already track corporate profits; what’s needed is a legal framework linking profit taxation to defined harmful practices. Clear definitions, audits, and enforcement mechanisms make this approach practical and enforceable.
Why We Need This Now
Modern capitalism is facing a legitimacy crisis. People are increasingly aware that companies prioritize profit over well-being, whether it’s engineered addiction, environmental degradation, or unhealthy consumption.
The Harm Tax addresses the problem at its source. By making harmful practices financially disadvantageous, it realigns incentives with the public good. Companies that innovate responsibly are rewarded, while those that continue harmful practices pay the cost. This preserves capitalism, but evolves it into a system that truly values human well-being.
Claiming My Place as the Inventor
I, Alex de Koning, am proud to be the inventor of the Harm Tax concept. On September 14, 2025, I articulated this novel approach to protecting society from corporate exploitation while maintaining the dynamic benefits of capitalism. To my knowledge, this is the first time a system has been proposed that directly taxes corporate profit from harm rather than the consumer, creating a fair and effective framework for modern society.
Examples and Potential Implementation
To make the Harm Tax tangible, here are some examples of how it could apply to modern products and services:
1.
Fast Food
- Harmful items: Deep-fried foods, ultra-processed burgers, sugary drinks.
- Potential tax: 30–50% of profit margin on these items.
- Incentive effect: McDonald’s could increase prices on a $2 fry or a high-sugar soda, but would see a lower profit. Instead, promoting healthier options (salads, grilled items, fruit, water) with a 10–15% profit tax would increase net profit. The company would naturally shift its menu toward healthier, lower-taxed items to maximize earnings.
2.
Sugary Beverages and Snacks
- Harmful items: Soda, energy drinks, candy with high sugar content.
- Potential tax: 25–40% of profit derived from these products.
- Incentive effect: Companies reformulate drinks with less sugar or market low-sugar alternatives. Consumers keep the choice, but companies are financially motivated to offer healthier products.
3.
Digital Products and Apps
- Harmful practices: Attention-grabbing features, addictive notifications, data exploitation.
- Potential tax: 30–50% of profit from user engagement generated by addictive features.
- Incentive effect: App developers may redesign notifications, feeds, or engagement mechanics to reduce addictive behavior while still maintaining profit from genuinely useful features.
4.
Tobacco, Alcohol, and Vaping Products
- Current sin tax: Often $1–$5 per pack or drink, mostly paid by the consumer.
- Harm Tax: 40–60% of profit on products associated with chronic health risks.
- Incentive effect: Companies reformulate, reduce additives, or invest in less harmful alternatives. The goal is not to punish the addicted consumer but to make harmful practices expensive for the company.
Why this works better than existing taxes
- Shifts financial pressure to the source of harm — the company, not the consumer.
- Encourages healthier and safer products — profit depends on reformulation and innovation.
- Keeps consumer choice intact — individuals aren’t punished for existing habits or vulnerabilities.
- Creates long-term systemic change — companies adjust strategies, product lines, and marketing practices to maximize profits without causing harm.
In short: A $2 fry that used to bring high profit suddenly becomes costly under the Harm Tax, while a $5 salad with a lower tax is more profitable. McDonald’s, or any similar company, now has a direct financial reason to favor healthier, less harmful items. The system incentivizes better business behavior naturally, without punitive effects on consumers.
The Future of Responsible Capitalism
The Harm Tax is more than an idea; it’s a roadmap for a fairer, healthier, and sustainable economy. By implementing this framework, governments can:
- Encourage ethical innovation
- Reduce consumer exploitation
- Protect public health and the environment
- Preserve the benefits of capitalism while controlling its excesses
It’s time to rethink how we reward profit in our economy. The Harm Tax offers a practical, just, and forward-thinking solution. The future of capitalism doesn’t have to mean harming people for profit — with the Harm Tax, it won’t.
Alex de Koning, September 14, 2025