If we give politicans and special interests to go ahead to have loopholes, liberals will drive a truck through it. But I agree that a consumption tax target on food purchases would be harsh for the middle and lower classes.
Ending loopholes is the who purpose of tax code reform. A consumption tax is not going to be popular.
You do know that in many states the only source of revenue for small towns are the grocery store via sales tax on food, right? Tax the poor folks, they are used to it.