I don't think you're missing anything at all. The idea of taxing revenue and deducting domestic factors of production was actually discussed as part of US corporate tax reform a couple years ago, and high-profile economists on both the left and right were both pretty positive on the idea. It's a more efficient way to tax profits that isn't easy to game like the current system.

Despite support among economists, it ended up being politically harder since some companies were against it, so they ended up going with a big deficit-funded tax cut instead.