Again from CFRA comes a timely report that the Senate Finance Committee is looking into the costs and benefits of abolishing the penny altogether as inflation reduces its value.
The Bank of Canada estimates since 1908, the penny has lost 95 per cent of its purchasing power. Deputy Governor Pierre Duguay says the impact on abolishing the penny would be "...insignificant and more likely non-existent..."
The Canadian Federation of Independent Business says for retailers, the penny is a nuisance and it's probably time to get rid of it. Yeah, let's round everything up.
In fact hyperactive NDP MP Pat Martin introduced a bill in 2008 proposing the elimination of the penny. The Winnipeg member estimates it costs anywhere between 1.5 cents and four cents to produce a penny when you factor in shipping, distribution and labour costs.
This has been proposed about a zillion times before; at some point 'twill stick.
WFDS
I do not like the idea, because anything that costs .95 cents will go up to s dollar, put on the HST and it could get worse.
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