Canada Ponders Pulling The Plug On The Penny

I still think it's wrong; and on many levels. I know many eastern countries have stopped using the penny but I guarantee prices and taxes will be round up each time instead of standard rounding practices.

While they say it's not inflationary, to who is it not? An additional penny for tax now turns into a nickle for tax. Billions will flow into the government's coffers and those monies are due nor deserved. I don't know about Canada but in the US the Tax Code specifically states to pay the tax which is due and only what is due.

I also see a problem for the consumer. The cost of goods will climb 3 to 4% depending on who determines the pricing. I don't know about you but I already loose 3 to 4 % annually to inflation. I guess I really don't need those medications anyway.

I can see the politicians smacking their lips over the Bonanza of cash this will create. Trust me, they probably already have a way to funnel the extra to pet, pork, public, projects (ain't I alliterate).

I know I have been beating this dead horse for several years now, but this is just plain wrong!

First, electronic transactions (the vast majority of all transactions) will remain accurate to the cent.

Second, sales tax is already properly rounded to the nearest cent; there is no reason why we cannot round to the nearest five or ten cents. That is right, I suspect the nickel will go next!

Third, any wise retailer, knowing that a cash transaction eliminates the vig to the banks for electronic transactions, will probably round the total down just to make an impression on a cash paying customer.

I agree with you jbuck...the prices of individual items would still be to the penny. The grocery still will still try to put a "9" on the end of many prices as possible. :)

Which reminds me...gas stations have been doing the rounding for years...gas isn't $2.59/gallon, it is $2.599.

it worked great in Australia, and I really don't see why Canada or the US should not follow suit.

Why not just change the monitary system so that the smallest denomination is $1. No change at all. Everything could cost $1, 2, 3, 4, etc. Nothing else. Ever any sales taxes would be $1, 2, 3, etc.
This would stop the usage of all coins. Just paper.
Ever notice how in a bank they say you get x.xx percent interest? Then you notice that if you have $1,234 in your account, the interest must be in at least 3 or 4 digits after the (.) So where does that extra go. If you would get $1.39584 interest, usually only $1.39 is entered. Who got the rest? One more reason for everything to be in the $1 only system.