Look Cruz wanted to do something dramatic so he comes out with this pie in the sky tax plan that gives the individual a 10% tax rate. Since that’s too low he has to figure a plan to make up for it on the back of small business. So Cruz comes up with the equivalent of a VAT at 16% which is not a tax on profits but a tax on total receipts minus operating expenses EXCEPT wages. The business owner would have to pay 16% taxes on wage which are not a profit to him/her. In addition the business owner would be paying 16% on his/her own wages then another 10% when he/she files thieir own individual taxes. So a double tax on small business.
Cruz knows there is no will in Congress to do away with the IRS. Not gonna happen.
Trump’s 15% tax on profits is the better way to go to stimulate new jobs.
Cruz is a lawyer, a politician and a self-proclaimed prophet. He knows zero about business.
From Cruz's tax page:For businesses, the corporate income tax will be eliminated. It will be replaced by a simple Business Flat Tax at a single 16 percent rate. The current payroll tax system will be abolished, while maintaining full funding for Social Security and Medicare. The convoluted tax code will be replaced with new rules of the game – so simple, in fact, that individuals and families could file their taxes on a postcard or phone app. The Death Tax will be eliminated. The Alternative Minimum Tax will be eliminated. The tax on profits earned abroad will be eliminated. And of course, the Obamacare taxes will be eliminated. Also gone will be the unending loopholes in the current code, the stacks of depreciation schedules for businesses, and the multi-tiered rates on income and investments. Under the Simple Flat Tax, the Internet remains free from taxes.
So... You are either lying, or you have no clue what you are talking about. Your description doesn't match his proposal.