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Finally government does something that makes "cents!"
Last week the federal government presented its annual budget. Once it was over, few were talking about tax cuts, tax hikes, job creation, improved programs or cuts to spending.
They were all talking about the move to stop minting pennies in Canada.
I think everyone in my age group and older remembers the term "Penny Candy" and going to their favourite candy counter (Mrs. Ozie's in my case) and buying things like licorice whips for a penny!
Nowadays a penny doesn't buy you anything. And it costs more than a penny to make a penny.
Our family all have jars, cans, tins, full of pennies we use to play Rumoli... this is great for us seasoned players... but newbies will soon either have to go across the border to buy a starting stash or we will have to all trade our pennies in for nickels! Not sure how that will pan out.
I like the idea that with the new system purchases will be rounded down if it comes to say $1.02... will then be $1... will have to carry calculator to get those deals! Rounding up doesn't strike me as fair.
However, the writing is on the wall now, to get rid of the controversy of rounding you can bet governments will round off taxes in the near future to even amounts and you can bet they won't round down.
However, it does not make sense to make a product and sell it at a loss. No business stays solvent doing that. And that is where the Canadian Government is with the Penny. I think the move to eliminate the Penny makes "cents!" Now if I can just make sense of what to do with my Rumoli stash.
–Until then,
Ken