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 Replies: 54 / Views: 6,070 |
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Bedrock of the Community
United States
17884 Posts |
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I see kids and adults throwing them on the ground routinely in disgust! Are you sure it is disgust over their condition, and not just the fact that they have no real purchasing power and aren't worth bothering with? (disgusted with the annoyance of dealing with the coin) |
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Pillar of the Community
United States
1158 Posts |
Hey, man! Don't you know that if you save 100 of those pennies........ you still can't buy anything?  |
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Moderator
 United States
188768 Posts |
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Hey, man! Don't you know that if you save 100 of those pennies........ you still can't buy anything?  |
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Valued Member
United States
99 Posts |
In reply to jbuck, where I'm at, if I purchase an item for $1.00 and the sales tax is 8.25% then my goal is $1.0825 or $1.08. Without cents the total would be $1.10 or $1.05. Tax collectors will not give up 3cents and the public will not want to give up an extra 2cents... We are not talking about Half Cents or fractions but getting rid of a whole numbers in math and using only 5 and 0. . Tax is added up, 0.5% from the city, 0.6% from the schools, 0.2% for counties, etc and doesn't always end with a 5 or 0. If I own a business and rounds down 3cents from $1.03 to $1.00 for a yearly sale of $1milkion I lose $30,000. If I round up to $1.05, I've made an extra $20,000 but the customers lost $20,000 from their purchasing power. |
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Pillar of the Community
United States
1158 Posts |
Don't you realize that is already happening at the thousandth of a cent decimal place? Rounding works both ways. What if you purchase an item for 3 dollar and the total is now 3.2475? It gets rounded up to 3.25 and you have a quarter of a cent "stolen" from you. But when you spend $5 and it is $5.4125, you get to keep that quarter of a cent. All day long people lose a few thousandths of a cent and gain them via rounding to the 100th of a cent. The net result over hundreds of transactions at different prices is that it balances out to zero cost. Moving the decimal up one place changes nothing.
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Moderator
United States
188768 Posts |
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I purchase an item for $1.00 and the sales tax is 8.25% then my goal is $1.0825 or $1.08. Without cents the total would be $1.10 or $1.05. Tax collectors will not give up 3cents and the public will not want to give up an extra 2cents But the tax collector is already giving up a quarter cent. You get that, right? Yours is but one example and you have to look at the big picture. For every sale they lose, there is another one where they will gain. Quote:We are not talking about Half Cents or fractions but getting rid of a whole numbers in math and using only 5 and 0. This does not matter. Rounding already happens to the nearest cent. Quote:
Tax is added up, 0.5% from the city, 0.6% from the schools, 0.2% for counties, etc and doesn't always end with a 5 or 0. Sure, but that total can be rounded to one that ends in a 0 or 5. For what it is worth, I round the entries on my tax returns to the nearest dollar. Neither State nor Fed has a problem with that (they tell you how to do it right there in the directions). Quote:
If I own a business and rounds down 3cents from $1.03 to $1.00 for a yearly sale of $1milkion I lose $30,000. If I round up to $1.05, I've made an extra $20,000 but the customers lost $20,000 from their purchasing power. If you are in a business where every transaction is one price, maybe you need to change that price to make it even out.  Stop trying to look at it that simply! You have to look at gross sales for the year and you pay the tax on that. Some you win, some you lose, but it evens out. Even if you rounded every one down, you are only going to pay a percentage on the gross receipts. The tax man does not lose because I guarantee you that your gross will be higher with happier customers. I give you the same challenge that I give every one else: Take every receipt you have for the last year and total them. Then properly round each receipt to the nearest nickel (or dime) and add them up. What is the difference between the two totals? Show your work. I will be brutally honest here: the failure to understand this does not change the facts. We can survive without the cent. 35 million Canadians cannot be wrong.  |
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Valued Member
United States
99 Posts |
I don't have the receipts but I have bank wth RBFCU which offers 10cent cash back on all qualifiying purchases. Say that each purchase was $10.099 I got to round down and pocket the difference of 10cent which help me earn my 2014 year end $80 rewards. Now take half, we get $40. Rounding up and down cause me $40 gain or lost which is about half a days work for me, time I can spend with my family. What about you, how much will you lose or gain? Some people might take 1hr to make $40 or 5hours...
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Pillar of the Community
 United States
1388 Posts |
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No civil unrest, no insurrections, and no cents. I smell the scent of the government not making sense in keeping the cent in circulation.  |
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Pillar of the Community
United States
1158 Posts |
This is not the same as "Cashback" at all. It rounds up as often as down. It's zero sum. It would be like if every other purchase got you either 5% cashback or accrued 5% interest. Purchase one gets rounded down 4 cents, the next one gets rounded up 3 cents, the next one down 2 cents, the next down 1 cent, the next up 3 cents. Continue on for a year and we are talking about pennies difference and statistical zero. Sure if you do something strange like make a seperate $1 purchase 10x a day every day for a year, it could cost you $100, but then there is the next guy making a bunch of $3 transactions saving $100. I honestly would be fine rounding to the next quarter. As a matter of fact, when the Lincoln Cent was started, a penny was worth what a quarter is now. Edited by tkbslc
01/22/2015 6:40 pm
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Pillar of the Community
United States
2734 Posts |
I am now saving any nice Canadian Cents I find, since they're "homeless"... The Cent's main 'value' nowadays is to keep you from getting any more of them back in change, ie. if you're diligent when you pay cash, you should never have more than four One Cent coins (or one Nickel) in your pocket. I'm diligent enough to keep it to 9 cents or less, and extra Nickels only if they're Westward Journey series... |
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Pillar of the Community
United States
927 Posts |
I started saving all of the cents and nickels that I received in change years ago because I thought they would be worth more than face value eventually. But recently I have realized that zincolns will probably never be worth more than 1 cent each, so I have cashed in almost $100 worth in the past 2 months. They do add up (and I have plenty more). I still keep the copper cents, but the money I received from cashing in the others will buy some more COINS! It's a win-win for me. I am saving space in my house and I get more coins. Who can argue with that?
And Jbuck, I agree with you 100%. Eventually the U.S. will stop minting cents for circulation. Who knows when...
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Moderator
United States
188768 Posts |
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I don't have the receipts but I have bank wth RBFCU which offers 10cent cash back on all qualifiying purchases. Say that each purchase was $10.099 I got to round down and pocket the difference of 10cent which help me earn my 2014 year end $80 rewards. Now take half, we get $40. Rounding up and down cause me $40 gain or lost which is about half a days work for me, time I can spend with my family. What about you, how much will you lose or gain? Some people might take 1hr to make $40 or 5hours... No, you still do not understand. You cannot round or estimate based on the grand total of all your receipts. You cannot just say that each purchase is the same (they are not). You have to properly round the totals on each and every receipt. Some will round up, some will round down. Until you do that, it will probably not make sense. Trust me, I am not out to get you. I am far from rich. I would love an extra $40. But I understand how it works and understand that it is not going to break me. |
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Bedrock of the Community
United States
17884 Posts |
Quote:
If I own a business and rounds down 3cents from $1.03 to $1.00 for a yearly sale of $1milkion I lose $30,000. If I round up to $1.05, I've made an extra $20,000 but the customers lost $20,000 from their purchasing power. This will be true IF you have a million customers each buying one single item for $1. Once they start buying more than one item at a time it changes. You said the tax rate was 8.25% so if they buy 1 item price $1.08 rounds to $1.10 customer loses 2 cents 2 item Price $2.17 rounds to $1.15 customer gains 2 cents 3 items Price $3.25 rounds to $3.25 customer breaks even 4 items Price $4.33 rounds to $4.35 customer loses 2 cents 5 items Price $5.41 rounds to $5.40 customer gains 1 cent 6 items Price $6.50 rounds to $6.50 customer breaks even 7 items Price $7.58 rounds to $7.60 customer loses 2 cents 8 items Price $8.66 rounds to $8.65 customer gains 1 cent 9 items Price $9.74 rounds to $9.75 customer loses 1 cent 10 items Price $10.83 rounds to $10.85 customer loses 2 cents So if you have ten customers who each made one of the above transactions the total win/lose would be a loss of 5 cents on 55 items purchased. (By the way if one person bought all 55 items he would only lose 1 cent.) Under the current system if you had ten customers each making one of the above purchases and rounding to the cent the net win/loss is 3 cents lost. So rounding to the closest 5 cent resulted in the loss of an additional 2 cents total among ten customers buying 55 items. |
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Pillar of the Community
United States
1566 Posts |
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I smell the scent of the government not making sense in keeping the cent in circulation. When has the government ever made sense? |
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Pillar of the Community
United States
1748 Posts |
I already round to five cent increments. I ask cashiers not to give me cents and if I get them I throw them in charity boxes or leave them at the register. They are corroded inconviences. The nickel I don't mind as much, but needs to retired bacuse it's just too expensive to manufacture.
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Replies: 54 / Views: 6,070 |
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Posted 01/22/2015 3:37 pm
