The problem is that you're incentivizing the creation of vertical monopolies. A small restaurant is forced to rely on suppliers who would pass the revenue tax o

The problem is that you're incentivizing the creation of vertical monopolies. A small restaurant is forced to rely on suppliers who would pass the revenue tax onto the restaurant. Meanwhile, McDonald's can afford to buy their own suppliers. McDonald's suppliers would technically not make any revenue, so they get to pay less in tax.