You are confusing the European VAT with what Cruz’s Business Tax. The Cruz plan is not a direct consumer tax. It is only paid by any business.
In your example of a software company, their basic deduction would be any purchases from other businesses and capital investments. The 16% would apply to wages and profits, but there would be no payroll tax which is now approx. 15% for SS & Medicare, and no 35% Corporate tax. Individual would only pay 10%.
I didn’t say Cruz’s tax was a VAT tax, the question was on a VAT Tax.
If you want to establish the Cruz tax isn’t a VAT, then people have to be educated to what a VAT really is.