I say keep the corporate tax and use it to fund Defense only. Ultimately consumers pay the tax but Defense will be spared from politics. The merchant marine in Jeffersons time would have been happy to pay the tax rather than the ransom $ to North Africans.
The income tax can be flat and then lowered as each department downsizes/closes. Problem solved.
I don’t understand how what you have proposed does anything to the long term federal budget problem. Entitlements & servicing the debt is the lion’s share of the budget. You could zero out federal operating costs like salaries and not even scratch the surface of the spending problem. If the ratios of those who work and are taxed vs those who don’t and just receive don’t change defense spending or any other constitutionally mandated spending doesn’t matter.