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penny-rounding “imposes a tax of $3.27 million Canadian dollars from consumers to grocery stores on a yearly basis in aggregate https://economics.ubc.ca/news/p
by axiolite 11mo ago
penny-rounding “imposes a tax of $3.27 million Canadian dollars from consumers to grocery stores on a yearly basis in aggregate
https://economics.ubc.ca/news/penny-rounding-profitable-for-canadian-grocers-ubc-vse-student-research/ https://economics.ubc.ca/news/penny-rounding-profitable-for-...
eliminating the penny would require producing more nickels to “fill the gap in small-value transactions.” But nickels suffer from a similar “seigniorage” problem: the 2024 U.S. Mint report said the five-cent coins have a unit cost of 13.78 cents each.
https://time.com/7215870/trump-us-penny-mint-costs-one-cent-coin-debate-explainer/ https://time.com/7215870/trump-us-penny-mint-costs-one-cent-...
- whimsicalism 11mo agoi think ~5 cents per capita is a fine price to pay to never have to think about pennies again
- kevincox 11mo agoEspecially since the lower cost means that we would save more than that 5 cents in taxes. (Well money is fungible so not really, but that money would be spent for some other government service.)
- wasabi991011 11mo agoCool research, thanks for being one of the few to bring substantial arguments to this discussion. For your first point, I would like to add the next sentence for context: "That means that a typical grocery store would receive an additional estimated $157 in revenue just from rounding." I feel like this is negligible. Also, for the nickel, the seigniorage ratio is 2.something, isn't that lower than the penny? I think there's a decent chance that removing the penny would still be a net benefit for the mint.