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2. The US Mint makes an overall profit on the circulation coins it produces for the Federal Reserve. It may not make a profit on its cent production, but, overall, the seigniorage generated is a money-maker for the Mint.
True, but if they stopped making the cent their overall profit would increase $50 to $75 million dollars a year.
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In the UK we still have 1p and 2p coins, but at least we can get the exact change ready as the price on the ticket is the price we pay - it always includes our Value Added Tax.
If sales tax was included on price tickets, and retailers rounded up or down most of their prices to the nearest 5c, there would be little need for the 1c coin.
True, but one of the major (flawed) arguments people make for not getting rid of the cents is that merchants "Would adjust their prices so it always rounds up." Of course with the tax being applied to final total price it would be impossible for it to always round up. BUT if the sales tax is included in the ticket price of each individual item, then it IS possible to set prices so that it always rounds up and costs the consumers more. (Because each item can be priced so that with tax it rounds up) Thus generating extra profit for the merchant.
Edited by Conder101
11/02/2021 01:49 am
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Posted 11/01/2021 1:29 pm
