Their is legislation in the works to do away with the penny as the price of zinc is increasing. As it stands, it costs $0.016 to make the $0.01 coin.

Legislation is out to make it so that say something costs 1.06 or 1.07 right now, without the penny, it would round down to 1.05. If it costs 1.08 or 1.09 now, they would round up to 1.10.

In favor or against this and why? What effect would it have. Negative or Positive?

Been done here in Australia, havn't had 1 or 2 cent coins for over a decade. No problem whatsoever. Just encourages people to use Bank Cards of EFTPOS to make a transaction, which inturn gives the banks more money. meh.

If your worried about having something rounded up, then look forward to all the products to be rounded down. Make three purchases of something 9.99, and you'll save 2 cents on it...

It simplifies alot of things if u ask me, no more "small change"

Their is legislation in the works to do away with the penny as the price of zinc is increasing. As it stands, it costs $0.016 to make the $0.01 coin.
You mean $0.16? :D

Drop a few pennies in a busy parking lot, see how many people bother to pick them up. Stores leave cups of them on counters to avoid having to deal with them. GET RID OF THOSE DAMN PENNIES!

My knowledge of economics is a bit bad... but let's see what this does:

I have some problem with just killing the penny and rounding down items to the nearest nickle. If it costs 2 cents to make something, 3 cents to ship it and market it.. the cost of the item is 5 cents... let the profit be 2 cents, then the item is 7 cents on the shelf. However we sell it for 5 cents. What it seems to me is that there is no profit. So they jack the profit up to 5 cents to cover the potentially lost profit due to not having a penny.

(I took a 5 minute break before posting and thought of a way this works)

Actually... I found a work-around. Their cost is 5 cents, and they want a profit of 2 cents to keep their item marketable. But they must raise it by 3 cents to even have a profit. So they make 3 cents more, which they can use to pay the cost of making the next item to sell... So their cost for the next item is 2 cents. With the desired profit of 2 cents, the total will be 4 cents. Add one cent to make the item cost more than "free" and it sells for 5 cents.

Or does this not work?

Pennies are mainly zink and at current price of zink are the only non fiat US currency - I.e. their metal content is worth slightly more than a penny. Lets cut this government loss by making plastic pennies. I do not know of any coin machine that takes pennies so that should not be any problem.

In this or some other threads I have advocated the phased elimination of all paper money, $100 and greater bills immediately with the lesser ones every six months or so. I want this mainly to reduce the number of people (could be you) killed in robberies, often drug related, but also to make the bulk of the payments drug dealers need for wholesale purchases to require several trucks loads of coins instead of a suitcase full of $100 bills or leave a "paper trail" for the police.

I think "soft drugs" should also be made legal. (I am trying to terminate the cost in lives and dollars to society of hard drugs, not against all drugs.) People without credit cards could get their government assistance monthly "check" on one “smart card” recharged monthly at the bank and that would save government postage as well as reduce the breaking open of mail boxes etc.

Reason I mention this here is that just read that in Philadelphia there are now cola can vending machines that take credit cards, instead of coins. - Probably to reduce the destruction of them for their coins also. WHY NOT ELIMINATE ALL PAPER MONEY? -Lots to gain, possibly you life, and nothing to lose, as I see it. The social cost of paper money is too high! US prisons are too full, mainly for crimes impossible without paper money. It cost more to keep a prisoner there than to send someone to Harvard. US can no longer afford the high cost of paper money.

Smart turn to a system that will be full of holes you could drive texas through. Paper and coin money exists for several reasons. It is none of the governments business what I buy or sell as long as I am not breaking the law. Paper money is spendable in in a power outage. Lastly those credit card machines cost money to have. they ask a flat rate every month. Nonprofit organizations like resale shops can't afford that.

Smart turn to a system that will be full of holes you could drive texas through. Paper and coin money exists for several reasons. It is none of the governments business what I buy or sell as long as I am not breaking the law. Paper money is spendable in in a power outage. Lastly those credit card machines cost money to have. they ask a flat rate every month. Nonprofit organizations like resale shops can't afford that.If there is no electric power, I think the absence of paper money for those few hours is not a big deal. Most people know how to write a check, do you not?

I failed to mention that currently the cash transactions often go un reported to IRS. (Perhaps your real worry is that you can not cheat on your taxes?) It is difficult to know the size of this "no-tax-paid" cash economy, but the estimates generally are near 30% of the taxed economy. Even if everyone paying taxes that are due, reduces the average tax bill by only 10% that will more than cover any cost associated with credit cards. In fact the cost of the mint constantly replacing paper money, may even pay for the cost of credit cards. The net effect in taxes saving by honest tax payers will be much greater and very significant on 15 April each year. As I said: A lot to gain and little to lose* if paper money were abolished.

Perhaps there may be 1000 people in all of American who cannot get a debit** card and are too literate to write a check. Paper money and personal checks differ only in that one facilitates crime and the other leaves a paper trail for the police.* Most do not go on shopping trips during black outs***, but if they do, they can write a check in the store's emergency lighting system's lights. Not one thing you say is a "hole big enough for Texas" is realistic. Only if you are for tax cheating and/or big drug dealer should you oppose ending paper money. Me, I want to lower my taxes, not get shot or mugged by drug addict needing a fix, pay less to support people in prisons****, etc.
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*You are not so naive as to think that in GWB's America you have guarantied "privacy" are you? Did you not know that NSA can and does listen to your telephone calls, watches your bank account, etc. if it wants to? Hell even your bank clerk knows much about you, if interested. The real protection of your privacy (if you are not a movie star, etc.) is no one gives a shit about what you do or don't.

**Credit cards are slightly harder to get, but I bet you are offered several every month.

***I guess there are a few idiots who would, but most like the traffic lights to function, or the metro to run, etc. and realize that on the dark streets they are at least 10 times more likely to get mugged. etc.

Get realistic!

****Probably 80% of the current prison population is there for a crime that would have be impossible, if there were no paper money. (Try running away from a liquor store you just robbed with 70 pounds of coins! Even a flat-footed middle-aged cop could catch you. LOL)