Let's Get Rid of Pennies!?

Question

They cost more money than they are worth to produce!

How would you feel about doing away with pennies?

Answer 1

Maybe we should find a way to make them cheaper to make? It seems kind of stupid to get rid of them. We'd have to come up with a whole different system if you think about itt... she makes a point about the taxes thing.

Answer 2

We probably will...it would be fiscally irresponsible if we continued to make them...on that note...CRUDE OIL 145.25

Answer 3

Just because a coin costs more than its own value might not mean its a bad idea to produce it.  What seems to matter is the total value the coin preserves on behalf of the parties who would otherwise receive less money were it not used.   So for example, if a sales tax is 6%, and the product costs $1, the tax is 6 cents.  If there were no pennies, and the policy was to the nearest 5 cents for all currency and coin transactions, then the tax due would only be 5 cents, and the revenue would be affected by a large percentage.   Yes, if the distribution of costs of goods was such that it was just as likely that we round up as round down, it might be a wash, but I would imagine that retail prices for transactions in currency and coin might tend to be skewed in one direction or the other, they certainly would be if the business did enough volume to have incentive to price such that the rounding gave them a lower effective tax rate.

So at best it becomes a complex thing to contemplate.  Who gains, who loses, how can the system be gamed to produce a winner when fairness was contemplated by the rule.  etc.

What I think we should focus on instead are expenditures like redesigning the nickel.   I see why we need to keep changing our bills.  Technology is making counterfeiting easier and easier, and we have to keep ahead or suffer serious losses.  But nobody makes counterfeit nickles.  this is a PR move and if you have read anything on what these efforts cost us, you would be concerned.

I think the budget for the mint operations needs to be very clear about what is necessary and what is fluff.  The redesign of the nickel seems like fluff to me.  but I could be wrong......

Answer 4

We need to keep pennies. Tax would get screwed up if we didn't have them because we wouldn't be able to get the tax amount to fall on an even number all the time. it would cost us more money because we would have to round up to the nearest multiple of five. (Example: you go to the grocery store and buy something for $1.50 but tax rounds it to like... $1.63. The government would most likely make you round up so you would end up having to pay $1.65.)

Answer 5

Well I don't know a 100 pennies makes a buck? and they make good for lil kids in there penny banks?lol