Formally, it is a 16% tax on business, but since it is passed on to consumers, it amounts to a VAT.
From his web site:
BUSINESS FLAT TAX ; SINGLE RATE: 16%The site is worth visiting.The corporate income tax along with the payroll tax are abolished, replaced by a 16% Business Flat Tax.
The current corporate tax code is riddled with years of accumulated loopholes and special favors, burdening U.S. businesses with the highest top tax rate among the advanced nations. This convoluted and anti-competitive structure will be replaced with a simple 16% tax on net business sales (gross sales minus expenses and capital expenditures).
The current payroll tax discourages work and job creation. The vast majority of Americans pay more in payroll tax than in income tax. The Simple Flat Tax will eliminate the payroll tax, boosting jobs and wages for working Americans, while guaranteeing funding for Social Security and Medicare.
That is.. to replace the onerous 39.6% that's in effect now.