Yes, way off. In this scenario Bill determines what he will sell his widgets for based on cost of production and without regard for any tax considerations. Once that price is fixed, before he ships it off to the retailer he will add the 16% business tax to the bill. The retailer pays it, then the consumer pays it. The only difference between this and a VAT tax is where the add on is added and who collects it. This is essentially a Federal Sales Tax.
How do you get that out of this: “The corporate income tax the source of endless waste and fraud in our tax system will be eliminated. No longer will American businesses face the highest top tax rate, 35 percent, in the developed world. The trend of American companies and jobs moving off-shore will stop. Instead, all companies will pay a simple, low rate Business Flat Tax of 16 percent. The tax will be based on revenues minus expenses such as equipment, computers, and other business investments.” https://www.tedcruz.org/tax_plan/
Revenues minus expenses at the end of the year & pay 16% on that seems pretty simple.
The problem I see is that the Cruz plan doesn’t seem “revenue neutral”...”eliminate all payroll taxes” [15%])...he must be planning some budget cuts?