Same exact way you calculate it now, using math. When everyone and their mother can easily get a ATM/debit card, cash has really lost it's place, at least in my life.
Cash:
Pro's:
Have your money with you
Hear it jingle in your pocket
Cons
Have your money with you
Watch it get lost or stolen, with no way to recover
ATM/Debit Cards:
Pro's:
Use anywhere plastic is taken (90% of the merchants in Phoenix, if not more)
Lose, it? Oh well, get it replaced, not liable for charged made fraudulently in the meantime
No need to deal with small change
Cons:
Darn, the bully can't take your lunch money, because he doesn't have your PIN number
I'm a supporter of plastic myself... but to think... what if all the banks are hax0red and we'd need the currency to buy food... damn...
What about the cost. IIRC it cost $0.013 to make a penny. .3 Cents doesn't seem like a lot, but think how many pennies are out there. 30% of all the pennies is a TON of money.
No, actually retailers would bring the *.99 items down to *.95.
Why? because it's easier to eat 3 cents per sale than to lose sales because it looks like the price just went up a dollar because the first digit changed.
Of course, once you think about it, you realize that the price change isn't anywhere near a dollar, but remember that humans act on impulse - and the first thing our brains see is the first digit. The first digit is where sales are made and lost.
Why? because it's easier to eat 3 cents per sale than to lose sales because it looks like the price just went up a dollar because the first digit changed.
Of course, once you think about it, you realize that the price change isn't anywhere near a dollar, but remember that humans act on impulse - and the first thing our brains see is the first digit. The first digit is where sales are made and lost.
eplebnista
Lifer
- Dec 3, 2001
- 24,123
- 36
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mugs
Lifer
- Apr 29, 2003
- 48,920
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Repost
I think we could easily do away with pennies... Especially if retailers were required to round up for 3 and 4 and DOWN for 1 and 2. That should satisfy everyone but the people who suck at statistics. Electronic transactions would still maintain accuracy to the penny, since no cash is being exchanged. The suggestion to replace dollar bills with dollar coins is a good one too - we'd save a ton of money printing bills (coins last way longer). The only problem there is that people would piss and moan about having to carry $1 coins in their pockets... these are of course the same people who insist on keeping the penny.
I think we could easily do away with pennies... Especially if retailers were required to round up for 3 and 4 and DOWN for 1 and 2. That should satisfy everyone but the people who suck at statistics. Electronic transactions would still maintain accuracy to the penny, since no cash is being exchanged. The suggestion to replace dollar bills with dollar coins is a good one too - we'd save a ton of money printing bills (coins last way longer). The only problem there is that people would piss and moan about having to carry $1 coins in their pockets... these are of course the same people who insist on keeping the penny.
How would sales tax be figured without pennies? It's kind of hard to charge 8.25% without pennies. I doubt any municipality that has a sales tax is going to lower it to 5% (they would lose alot of money). This means they would have to raise it to 10% and that's a pretty substantial hike.
Schadenfroh
Elite Member
- Mar 8, 2003
- 38,416
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So in order to get to an even dollar a retailer would have to charge .9175. I don't think that is going to happen either.
I have no idea why you think the percentage would change... Everyone would use the same way of calculating tax.
For example, let's take 8.25% sales tax on a P4-2.8c at Newegg... Retail is $266.00, so sales tax would be 21.945. Currently, they'd round it up to $21.95. But under this new plan we'd round it to the nearest nickel... Umm... Hmm... Ok, $266 is a bad example. :frown:
Let's try a Lite-On 48x24x48x16 CDRW, which is on sale at Newegg for $50.99. Sales tax on that would be $4.206675, which would be rounded to $4.21. Under the new plan, it would be rounded to the nearest nickel which is $4.20.
Ok, I understand what you are saying, add the 8.25% and then round up the total to the nearest nickel. That makes sense. The accounting part of it would probably be a pain though
That's not how sales tax and rounding works. If you buy something and the price plus tax comes to $12.58 the merchant charges you $12.60 (On a cash sale. Credit doesn't require any rounding since physical coins are not involved). If it came to $12.57 he charges you $12.55.
At the end of the month, the merchant does not total up all the tax he collected. He looks at his gross sales. If it is $108,250 he sends the state a check for $8,250. The state doesn't care if he "charged tax" or not. The just assume that his total sales of taxable goods included 8.25% of tax. Occasionally stores will have "no tax" sales promotions where they won't charge the sales tax. All they are really doing is reducing the price the appropriate amount.
We should get rid of pennies and keep dollar BILLS. How do people not understand that we currently round to the nearest penny. Rounding to the nearest nickle won't change a thing if you average it out.
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