The U.S. is following Canada's footsteps regarding the production of pennies and nickels. According to U.S. Treasury Secretary Tim Giethner, our U.S. Mint intends to remove the penny and nickel coins from circulation beginning early in January 2013.
Yeah...the metal to make them is worth more than the coins themselves.
Its not about the raw cost ( dont forget printing, distribution, etc ) but what they represent.
So if i buy something that is 9.97 after tax and i give them a 10, i guess i no longer get change. "just round up the cost", and everyone now spends billions more a year ...
Hello, the dollar bill will be next. Im not sure this is for saving money as it is for going to a more cashless system. Designed to to slow the underground economy so the Feds know every transaction to Tax you more.
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11:57 AM
Gokart Mozart Member
Posts: 12143 From: Metro Detroit Registered: Mar 2003
So everything will be rounded up. I wonder what's going to happen to the 9/10 cent at the gas pumps?
Actually if the article is to be beleived,
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Although the days of pennies and nickels are numbered, they will still be accepted in cash transactions. Meanwhile, merchants are preparing to round all transactions to the nearest ten-cent increment, meaning that consumers may be paying a few cents more than usual in the near future.
it could be rounded up or down. Rounding to the "nearest" ten-cent increment means 1,2,3 and 4 round down while 5, 6, 7, 8 and 9 round up. The question is will stores actually implement it that way. I have a feeling it will end up a mixed bag. So yeah, consumers may be paying a few cents more, but they might alos be paying a few cents less. Granted more numbers round up then down, so overall you will end up paying a little more statistically speaking over a larger base of purchases. Funny thing is we have extreme couponing, so will we now have extreme shopping with people tracking the cost of what they are buying, calculating tax and total to try to end with a total of something and 4 cents so they save that 4 cents on ever transaction? Or atleast always have a round down purchase?
[This message has been edited by Khw (edited 12-02-2012).]
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01:06 PM
KidO Member
Posts: 1019 From: The Pacific Northwest Registered: Dec 2003
Hello, the dollar bill will be next. Im not sure this is for saving money as it is for going to a more cashless system. Designed to to slow the underground economy so the Feds know every transaction to Tax you more.
Its designed to STOP it, not slow it. But of course people will just go to bartering stuff instead of cash, at least until they mandate 'title' on everything you own like they do cars and homes. "Ill take that pile of gold rings for this bag of meth". ( or less subversive : "I'll offer you 15 gallons of gas for that used kindle."
Plus they can will more easily track every purchase for data mining. And movements since they will know where you purchased that gas or milk.
Originally posted by Khw: it could be rounded up or down
Don't kid yourself, it will always round up. The extra pennies add up to the stores bottom line, and will still exist 'on paper'.. Just not for those of us who prefer a little bit of anonymity at the grocery.
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01:55 PM
fierofool Member
Posts: 12995 From: Auburn, Georgia USA Registered: Jan 2002
Prices will need to be adjusted with sales tax in mind. A $5.99 item with .07% tax would normally be $6.41, so the logical thing to do would be to decrease the price to $5.98 as opposed to raising it to $6.08. But leave it to the government to just round up the sales tax instead of letting the merchants make the adjustment.
removing the lowest money on the totem stops you from remembering how worthless your money really is. i fyou think about it all the need to do to keep the sheeps eyes covered about out of control inflation is every once in a while cut off the bottom of the currency. but going cashless will just make it a bunch of numbers soon and when they want to lower inflation all the will doo is remove some zeros from everyones bank accounts and say your moeny is worth the same.... or more i bet there are many of you that remember when a penny actually bought something or if you had enoguh of them (within reason) they could pay to fill up your car with gas.
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02:20 PM
Khw Member
Posts: 11139 From: South Weber, UT. U.S.A. Registered: Jun 2008
Don't kid yourself, it will always round up. The extra pennies add up to the stores bottom line, and will still exist 'on paper'.. Just not for those of us who prefer a little bit of anonymity at the grocery.
Really? So when was the last time that a store rounded your $1.073 in sales tax to $1.08?
[This message has been edited by Khw (edited 12-02-2012).]
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02:25 PM
Khw Member
Posts: 11139 From: South Weber, UT. U.S.A. Registered: Jun 2008
Prices will need to be adjusted with sales tax in mind. A $5.99 item with .07% tax would normally be $6.41, so the logical thing to do would be to decrease the price to $5.98 as opposed to raising it to $6.08. But leave it to the government to just round up the sales tax instead of letting the merchants make the adjustment.
No they won't. So you adjust 1 item... How often is 1 item purchased? It would be impossible to adjust prices with the infinite number of purchase combinations and totals that could be reached by all those combinations. Adjusting 1 item so it comes out better will become meaningless when you add that pack of gum and the new total doesn't come out so neat. For example, buy three of your $5.98 items and with tax it comes out to $19.19. 10 of them? $63.98. Your "even" tax total no longer works out to a even tenth of a dollar when more then 1 is purchased. Of course it could work... If tax was a even 10% increment and everything was priced to a whole dollar...
[This message has been edited by Khw (edited 12-02-2012).]
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02:33 PM
Formula88 Member
Posts: 53788 From: Raleigh NC Registered: Jan 2001
Prices will need to be adjusted with sales tax in mind. A $5.99 item with .07% tax would normally be $6.41, so the logical thing to do would be to decrease the price to $5.98 as opposed to raising it to $6.08. But leave it to the government to just round up the sales tax instead of letting the merchants make the adjustment.
The logical thing will never be to "decrease" the price. It will round up. That $5.99 item with 7% sales tax will cost $6.50, or $6.07 before tax.
I think it's a good thing. It's a bad thing that our dollar isn't worth what it used to be, but it's a good thing we aren't going to continue to waste money producing worthless change.
quote
Originally posted by KidO:
It's obvious that some people just don't like change.
Dollar bills and paper money will stay around as long as there are strippers. There is no way some guys will put THAT on their card. We will never be completely cashless thanks to those girls who shake it, and many other "tipped" jobs.
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03:42 PM
AusFiero Member
Posts: 11513 From: Dapto NSW Australia Registered: Feb 2001
We cut 1c and 2c coins out years ago. We also turned $1 and $2 bills into coins. Makes life much simpler and after a night out you come home with a pocketful of coins that add up to a hefty amount
As for spending most shops have adapted to a simple 8c and 9c round it up, 6c and 7c round it down. 1c and 2c down, 3c and 4c up.
There really is no need for 1c and 2c coins anymore in a world where it buys nothing.
We cut 1c and 2c coins out years ago. We also turned $1 and $2 bills into coins. Makes life much simpler and after a night out you come home with a pocketful of coins that add up to a hefty amount
As for spending most shops have adapted to a simple 8c and 9c round it up, 6c and 7c round it down. 1c and 2c down, 3c and 4c up.
There really is no need for 1c and 2c coins anymore in a world where it buys nothing.
I dont want a pocket full of change. And i would rather pay the actual bill, not a rounded version.
I already have a chart for evn dollar totals in $5 increments at 7% sales tax. It took about an hour to draw up, but now I can say "$150 after tax" and not have to keep a bunch of coins in the register. I still do odd tax amounts on some merchandise, but that will end up changing next year it looks like.
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04:28 PM
KidO Member
Posts: 1019 From: The Pacific Northwest Registered: Dec 2003
Dollar bills and paper money will stay around as long as there are strippers. There is no way some guys will put THAT on their card. We will never be completely cashless thanks to those girls who shake it, and many other "tipped" jobs.
I was living in Canada when the $2 bill was phased out. It was rough stuffing $5's into those G's, but someone had to do it!
I already have a chart for evn dollar totals in $5 increments at 7% sales tax. It took about an hour to draw up, but now I can say "$150 after tax" and not have to keep a bunch of coins in the register. I still do odd tax amounts on some merchandise, but that will end up changing next year it looks like.
I dont have a problem with people adjusting their price to charge an 'even' amount.. Its just removing the option to do so is my issue.
No they won’t because the stores will still sell products at,, $19.99 because for some unknown reason people think that product doesn’t cost $20.00
Steve
Yes, even in Oregon where there is no sales tax, the prices still end in 99 or 97. I always thought it would be much simpler for everyone to drop use of the pennies here. But as pointed out, the tax man still uses mils even though there are no mil coins. Those little amounts add up.
I remember when dollar stores were dime stores too but the (Keynesian) economists say that we must have some inflation and never deflation. Enjoy the ride.
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06:36 PM
PFF
System Bot
84fiero123 Member
Posts: 29950 From: farmington, maine usa Registered: Oct 2004
Yes, even in Oregon where there is no sales tax, the prices still end in 99 or 97. I always thought it would be much simpler for everyone to drop use of the pennies here. But as pointed out, the tax man still uses mils even though there are no mil coins. Those little amounts add up.
I remember when dollar stores were dime stores too but the (Keynesian) economists say that we must have some inflation and never deflation. Enjoy the ride.
That’s 5 and dime stores dude, get it right.
Steve
------------------ Technology is great when it works, and one big pain in the ass when it doesn't
Detroit iron rules all the rest are just toys.
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06:38 PM
mptighe Member
Posts: 3321 From: Houston, TX Registered: Aug 2009
There was an article about this not long ago. It costs $.024 to make a coin worth $.01. This makes sense to continue why? Some people will b!tch about anything. Complain because the government spends too much money then complain because they try to make a change to stop waste. Yes the dollar bill is next because while it is cheaper to produce it has a life expectancy of 10-12 years max in circulation. A $1.00 coin may cost more to produce but has a lifespan of 4-5 times longer in circulation. Applying sound economics to making currency is the first thing they've done right in some time.
[This message has been edited by mptighe (edited 12-02-2012).]
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07:31 PM
rogergarrison Member
Posts: 49601 From: A Western Caribbean Island/ Columbus, Ohio Registered: Apr 99
I said 20 years ago the only coins we need are 25 and 50 cent pieces. You cant buy anything for a penny, nickle or dime anymore that I know of. Sure make pricing items a lot easier too...everything rounds to nearest quarter.
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07:38 PM
jetman Member
Posts: 7806 From: Sterling Heights Mich Registered: Dec 2002
Well it looks like I can't give you a penny for your thoughts or toss my two cents in.
Pre 1982 pennies and most every nickel to date has intrinsic value due to the metal content more than the actual demonination. I save nickels just for that reason, go ahead and laugh at me, last piece of american coin minted today with intrinsic value, kinda like how people saved old pre 1964 silver coins.
Oh yeah, found my link to "CoinFlation" that has the actual metal melt values of coins, updated to current metal prices too.
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07:59 PM
rogergarrison Member
Posts: 49601 From: A Western Caribbean Island/ Columbus, Ohio Registered: Apr 99
It’s about time! It really makes no “cents” to me anyway to keep making them, as I rarely ever use cash.
All I use is cash. Ive never had a debit card, and the only reason I have a credit card is because I have one from my work. It really bothers me when I go somewhere, the cashier tells me the price "that'll be 7.83 sir!" and I give them 2 five dollar bills and 85 cents and they look at me like I just handed them 2 beaver pelts and a bag of marbles.... 0_o
[This message has been edited by HoMiE_TeLeFrAgGeD (edited 12-02-2012).]
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08:12 PM
jetman Member
Posts: 7806 From: Sterling Heights Mich Registered: Dec 2002
Let's look at Korean money. Won is the dollar. the 1 won coin and 5 won coin have been out of circulation since 1992. The lowest coin is 10 won. Everything is rounded to the 10. Using this, things that were 1 cent would be worth 10 cents and everything would be rounded up. The question is to what extent? Candy bars won't go to $10 but tax would go up to the tens. Items would be $1.00 with $.10 tax.
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10:10 PM
blackrams Member
Posts: 33139 From: Covington, TN, USA Registered: Feb 2003
Wouldn't it be a lot simpler to just raise the value of our dollar to the appropriate level to make those coins actually reflect their current value? Then again, that would make paying off our debt to China an interesting situation. A simple adjiust in the currency. There sure would be a lot less millionaires then. The price of a loaf of bread and a gallon of gas would drop.
But, so would the wage scale. Works for me.
------------------ Ron A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. So, what do ya think, are we there yet?
[This message has been edited by blackrams (edited 12-02-2012).]
