Tax Law Boosts U.S. Car Sales

Car sales by the Big Three domestic auto makers soared in mid-December to 26.3% above the same period a year ago as buyers sought to purchase their cars before Jan. 1, when a revision to the federal tax code ended the deduction for sales taxes.

But sales were down slightly overall for the year to date, General Motors, Ford and Chrysler said today. In 1986, through Dec. 20, GM sales were down 1.8%; Ford, down 1.1%, and Chrysler, up 2.6%. Overall for the year through mid-December, sales by the Big Three were down 1%.