It would be a better plan if it exempted tax on food.
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.
The tax revenues would lose another $ 200 billion per year if it exempts the food. It is a foolish plan and political disaster. You cannot win elections when you are telling the 50% of the population who pay zero taxes after filing all their deductions under the current tax code that they have to pay a mandatory 9% taxes on their income with zero deductions and an additional 9% national sales tax on every item they purchase including the basic items such as food and clothing.
Then, some whacko do-gooder will decide that "fatty" or "salty" or "junk" foods should be taxed to "help" Americans make better choices.
Cain's said his ultimate goal is the so-called Fair Tax, which has problems of its own. The 9-9-9 is supposed to be a stop-over, a way to introduce Americans to a new taxation system.
Except for the fact that it would distort food prices, which is a worse outcome.