A penny now costs 1.4 cents to make.

[techs]

http://www.nytimes.com/2006/04/22/business/22charts.html

This week the cost of the metals in a penny rose above 0.8 cents, more than twice the value of last fall. Because the government spends at least another six-tenths of a cent ? above and beyond the cost of the metal ? to make each penny, it will lose nearly half a cent on each new one it mints.

The real problem could come if metals prices rise so high that it would be economical to melt down pennies for the metals they contain.

Pennies, meanwhile, are in high demand. Last year, the mint made 7.7 billion of them ? more than the number of all the other coins it produced. In the first three months of this year, the pace of penny production rose to an annual rate of 9 billion ? the highest since 2001.



How about some common cents? Eliminate the penny and resize the Nickel downward to about the current size of the penny. That would save the metal costs on the nickel and keep it viable for a far longer period of time.
And replace Ike with Lincoln on the nickel (optional)

 

[Looney]

I toss out my pennies anyways, so it wouldn't make a difference to me.

 

[techs]

Originally posted by: Looney
I toss out my pennies anyways, so it wouldn't make a difference to me.

A centsible policy.

 

[homercles337]

Pennies are just stupid. Why do we still use them?

 

[techs]

Originally posted by: homercles337
Pennies are just stupid. Why do we still use them?

Would it surprise you to know the "Penny Lobby" is powerful in Washington?
Seriously, Illinois strongly supports the penny in Washington. Which was why I suggested we put Lincoln on the nickel.(seems Texas doesn't get so excited about their native son, Ike)

 

[EagleKeeper]

Resizing the nickel will affect multiple coin handling devices.

Eliminate the penny is fine.

What happens if you bi;; comes to an unven value that a nickel can be given back as change. Who gets the benifit, the merchant or the consumer?
Should the merchant keep the extra or forward it to the state.
Think of the accounting issues.
What about the cashiers at the merchant. How will their drawers balance out.

 

[smack Down]

Originally posted by: EagleKeeper
Resizing the nickel will affect multiple coin handling devices.

Eliminate the penny is fine.

What happens if you bi;; comes to an unven value that a nickel can be given back as change. Who gets the benifit, the merchant or the consumer?
Should the merchant keep the extra or forward it to the state.
Think of the accounting issues.
What about the cashiers at the merchant. How will their drawers balance out.

How is not having a penny any different then not have a .1 cent coin. Gas is sold by the .1 cent and what happens with the tax on a 10 cent item.

 

[techs]

Originally posted by: EagleKeeper
Resizing the nickel will affect multiple coin handling devices.

Eliminate the penny is fine.

What happens if you bi;; comes to an unven value that a nickel can be given back as change. Who gets the benifit, the merchant or the consumer?
Should the merchant keep the extra or forward it to the state.
Think of the accounting issues.
What about the cashiers at the merchant. How will their drawers balance out.

If it ends in 0-4 it rounds down and if its 5-9 it rounds up. While that may be difficult for many of todays uneducated McDonalds picture pushing morons, I am sure that with a few years of training even they could figure it out.
And my suggestion to resize the nickel downward wouldn't take effect for a few years. This would give coin machines time to adapt on their new machines. Say,five to ten years? And wouldn't cost them anything.

Of course, I wonder if there would be a movement to put Jesus on the new nickel?

and what happens with the tax on a 10 cent item
Eliminate it!! Tax free 10 cent items for everyone!

 

[homercles337]

Originally posted by: EagleKeeper
Resizing the nickel will affect multiple coin handling devices.

Eliminate the penny is fine.

What happens if you bi;; comes to an unven value that a nickel can be given back as change. Who gets the benifit, the merchant or the consumer?
Should the merchant keep the extra or forward it to the state.
Think of the accounting issues.
What about the cashiers at the merchant. How will their drawers balance out.

If you eliminate the penny you eliminate the pricing structure for it.

 

[smack Down]

Originally posted by: techs

Originally posted by: EagleKeeper
Resizing the nickel will affect multiple coin handling devices.

Eliminate the penny is fine.

What happens if you bi;; comes to an unven value that a nickel can be given back as change. Who gets the benifit, the merchant or the consumer?
Should the merchant keep the extra or forward it to the state.
Think of the accounting issues.
What about the cashiers at the merchant. How will their drawers balance out.

If it ends in 0-4 it rounds down and if its 5-9 it rounds up. While that may be difficult for many of todays uneducated McDonalds picture pushing morons, I am sure that with a few years of training even they could figure it out.
And my suggestion to resize the nickel downward wouldn't take effect for a few years. This would give coin machines time to adapt on their new machines. Say,five to ten years? And wouldn't cost them anything.

Of course, I wonder if there would be a movement to put Jesus on the new nickel?

and what happens with the tax on a 10 cent item
Eliminate it!! Tax free 10 cent items for everyone!

Tax isn't paid on indivual items. It is paid on the net sales a store does. A store that sales a million dollars of 1 cent items or one item for a million dollars they pay the same tax.

 

[kage69]

We should have ditched the penny years ago. Damn silly coins always messing up the silver scheme of my change jars, bah!

 

[IronWing]

Originally posted by: techs

And replace Ike with Lincoln on the nickel (optional)

I'll pay you six cents for each of your Ike nickels.

 

[Zebo]

They should eliminate money totally.... nasty stuff plus I think it would aid in catching tax cheats and other illicit activity. There was a guy in my home town who had a 14 bay garage and the government said he undereported over 6 million in cash payments to his garage over a 10 year period. He just took about 1/4 of the cash payments and all the CC reciepts to bank. And lived high on the hog on tax free money.

How could you sell drugs w/o cash?

 

[techs]

Originally posted by: smack Down

Originally posted by: techs

Originally posted by: EagleKeeper
Resizing the nickel will affect multiple coin handling devices.

Eliminate the penny is fine.

What happens if you bi;; comes to an unven value that a nickel can be given back as change. Who gets the benifit, the merchant or the consumer?
Should the merchant keep the extra or forward it to the state.
Think of the accounting issues.
What about the cashiers at the merchant. How will their drawers balance out.

If it ends in 0-4 it rounds down and if its 5-9 it rounds up. While that may be difficult for many of todays uneducated McDonalds picture pushing morons, I am sure that with a few years of training even they could figure it out.
And my suggestion to resize the nickel downward wouldn't take effect for a few years. This would give coin machines time to adapt on their new machines. Say,five to ten years? And wouldn't cost them anything.

Of course, I wonder if there would be a movement to put Jesus on the new nickel?

and what happens with the tax on a 10 cent item
Eliminate it!! Tax free 10 cent items for everyone!

Tax isn't paid on indivual items. It is paid on the net sales a store does. A store that sales a million dollars of 1 cent items or one item for a million dollars they pay the same tax.

Hmm. Depending on each individual sale a sales tax rate of 5 percent is almost never actually 5 percent. For example a 49 cent item may have 2 cents in tax and a 50 cent item 3 cents in tax (cause the smallest denomination of coinage is the penny).
So you would think it is probable that over the course of say a year that the collection of tax by a retailer and the amount owed on the total sales would be very slightly different.
So your reasoning is correct, but the situation you describe is already what happens.

 

[Rainsford]

Originally posted by: Zebo
They should eliminate money totally.... nasty stuff plus I think it would aid in catching tax cheats and other illicit activity. There was a guy in my home town who had a 14 bay garage and the government said he undereported over 6 million in cash payments to his garage over a 10 year period. He just took about 1/4 of the cash payments and all the CC reciepts to bank. And lived high on the hog on tax free money.

How could you sell drugs w/o cash?

How would you pay for things like a hot dog from a street vendor, or a taxi ride?

 

[techs]

Originally posted by: Rainsford

Originally posted by: Zebo
They should eliminate money totally.... nasty stuff plus I think it would aid in catching tax cheats and other illicit activity. There was a guy in my home town who had a 14 bay garage and the government said he undereported over 6 million in cash payments to his garage over a 10 year period. He just took about 1/4 of the cash payments and all the CC reciepts to bank. And lived high on the hog on tax free money.

How could you sell drugs w/o cash?

How would you pay for things like a hot dog from a street vendor, or a taxi ride?

The same way I always do. With money. Just not with pennies.

 

[Engineer]

Originally posted by: Rainsford

Originally posted by: Zebo
They should eliminate money totally.... nasty stuff plus I think it would aid in catching tax cheats and other illicit activity. There was a guy in my home town who had a 14 bay garage and the government said he undereported over 6 million in cash payments to his garage over a 10 year period. He just took about 1/4 of the cash payments and all the CC reciepts to bank. And lived high on the hog on tax free money.

How could you sell drugs w/o cash?

How would you pay for things like a hot dog from a street vendor, or a taxi ride?

Plastic (with wireless transmitter) FTW!

I guess they could place a card swipe on the Salvation Army kettles too!

(not that I would mind. I love plastic (CC's), especially the one that pays me to buy stuff that I normally buy )

 

[techs]

Originally posted by: Engineer

Originally posted by: Rainsford

Originally posted by: Zebo
They should eliminate money totally.... nasty stuff plus I think it would aid in catching tax cheats and other illicit activity. There was a guy in my home town who had a 14 bay garage and the government said he undereported over 6 million in cash payments to his garage over a 10 year period. He just took about 1/4 of the cash payments and all the CC reciepts to bank. And lived high on the hog on tax free money.

How could you sell drugs w/o cash?

How would you pay for things like a hot dog from a street vendor, or a taxi ride?

Plastic (with wireless transmitter) FTW!

I guess they could place a card swipe on the Salvation Army kettles too!

(not that I would mind. I love plastic (CC's), especially the one that pays me to buy stuff that I normally buy )

I can't remember the last time I paid or recieved back a penny from a hot dog vendor.
In fact every one I have ever been to includes tax in their price and their price ends in an even sum with no pennies.

 

[Zebo]

Exactly a simple magnetic wiping meter connected via boardband to banks. Could do everything parking meters to swap meets. Everyone would have one if no cash was used. Even at garage sales..

I heard they are incorporating card readers into cells phones right now!

All cash means is two sets of books and huge black market for illcit activity, 9 billion in cash is missing from US tresury in Iraq. With Swiss no questions asked deposits I imagine a few of the brass will retire quite nicely. Who ever took it that would'nt be possible with electronic records.

 

[techs]

Originally posted by: Zebo
Exactly a simple magnetic wiping meter connected via boardband to banks. Could do everything parking meters to swap meets. Everyone would have one if no cash was used. Even at garage sales..

I heard they are incorporating card readers into cells phones right now!

All cash means is two sets of books and huge black market for illcit activity, 9 billion in cash is missing from US tresury in Iraq. With Swiss no questions asked deposits I imagine a few of the brass will retire quite nicely. Who ever took it that would'nt be possible with electronic records.

Sorry but without cash money we would easily fall into a dictatorship.

 

[raz3000]

Merchants have indicated that if the penny is eliminated they will round up. Something that costs 91 cents will become 95 cents. Since I make a lot of small purchases I'd rather keep the current system than face a shock of inflation.

 

[techs]

Originally posted by: raz3000
Merchants have indicated that if the penny is eliminated they will round up. Something that costs 91 cents will become 95 cents. Since I make a lot of small purchases I'd rather keep the current system than face a shock of inflation.

However the free market should penalize those that charge more and the prices should come back down.

 

[CSMR]

Originally posted by: Zebo
They should eliminate money totally.... nasty stuff plus I think it would aid in catching tax cheats and other illicit activity. There was a guy in my home town who had a 14 bay garage and the government said he undereported over 6 million in cash payments to his garage over a 10 year period. He just took about 1/4 of the cash payments and all the CC reciepts to bank. And lived high on the hog on tax free money.

How could you sell drugs w/o cash?

Have you reported him?

 

[EagleKeeper]

Originally posted by: techs

Originally posted by: raz3000
Merchants have indicated that if the penny is eliminated they will round up. Something that costs 91 cents will become 95 cents. Since I make a lot of small purchases I'd rather keep the current system than face a shock of inflation.

However the free market should penalize those that charge more and the prices should come back down.

Where retailers operate on a 2-3% profit margin, it will not happen.
They will not eat the loss.

It will be the consumer that pays the extra 2-3 cents that they intially get back in change.

 

[smack Down]

Originally posted by: EagleKeeper

Originally posted by: techs

Originally posted by: raz3000
Merchants have indicated that if the penny is eliminated they will round up. Something that costs 91 cents will become 95 cents. Since I make a lot of small purchases I'd rather keep the current system than face a shock of inflation.

However the free market should penalize those that charge more and the prices should come back down.

Where retailers operate on a 2-3% profit margin, it will not happen.
They will not eat the loss.

It will be the consumer that pays the extra 2-3 cents that they intially get back in change.

Who cares no one uses there pennies anyway.