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<p>[QUOTE=&quot;flaminio, post: 192972, member: 213&quot;]Right. And my point was that the presence of sales tax has no effect whatsoever on cent rounding versus nickel rounding.</p><p><br /></p><p>Do you have a contrary example?</p><p><br /></p><p><br /></p><p><br /></p><p>Very true. We are in agreement then that the total needs to be rounded <i>somewhere</i>. The question then is: where is it economically most productive to round? Clearly, rounding to the nearest $100 is too high, and rounding to the nearest mill is too low. The answer&#039;s somewhere in between.</p><p><br /></p><p>Personally, I feel that rounding to the nearest dime is most appropriate. When the half cent was killed in 1857, it had the purchasing power of about one dime today. (According to the <a href="http://www.westegg.com/inflation/" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.westegg.com/inflation/" rel="nofollow">Inflation Calculator</a>, putting in .005 for the amount, 1857 for the initial year, and 2005 for the final year.) So, if a half cent was deemed economically unnecessary back in 1857, then correspondingly anything under a dime would be economically unnecessary today.</p><p><br /></p><p>The only reason I use nickel rounding in my examples is because that&#039;s what is called for in the bill submitted to Congress by Jim Kolbe. In reality, nickels have also become economically unviable, as the cost of copper and nickel metals has risen to the point where it costs 7.2c to make one nickel -- clearly a losing proposition. Dimes are still profitable, however. Changing the nickel composition to something like nickel plated steel would remedy that problem, however. Pennies, however, are pretty much hopeless no matter what metal you choose. There&#039;s much more lost in the distribution and handling of them than the cost of the metal alone.[/QUOTE]</p><p><br /></p>

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