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.
If you can read which is doubtful you will see that Cruz’s tax plan calls for business’s to be taxed on “Gross receipts” Gross receipts is the total revenue your business takes in. Not profits.
So then you get to deduct out most business expenses but you have to pay a 16% tax on profits as well as wages. Wages are not money that go to the owner it goes to the employees. So now the business owner is paying 16% on wages and then the owner and the employees get to pay another 10% later on those wages when they file their individual tax returns. Cruz is abolishing the payroll tax and then making the business owner start paying the equivalent of a payroll tax. How hard is that for you to understand?