Tax Reform Hurting Car Sales

The July 21 story, “Car Makers Can’t Seem to Reverse U.S. Sales Slump,” overlooks the obvious.

The primary reason unsold cars are backing up so badly, whether domestic or foreign, is the Tax Reform Act of 1986’s phase-out of the deductibility of interest payments for consumer purchases. This is another instance of how this allegedly tax-neutral “reform” has ravaged the middle class.

Why not get the money by taking out a home equity loan? Well, given the egregious escalation in home prices, many can’t afford to buy a home. And many of those who can have reason to be reluctant to risk their chief asset for something as transient as the latest mode of transportation.

Car makers would do well to flex whatever political muscle they may still have to push for restoration of consumer interest deductions--or else sell their cars interest free.

JOHN CARL BROGDON

Long Beach