The US penny currently costs over twice the face value of the penny to manufacture ($0.0241). We produce it at a loss. Also:
- The Penny has limited utility. It is not accepted everywhere (some businesses, vending machines, toll booths, etc...). Most pennies end up not being spent as a result. The rise of electronic payments further erodes the penny's practical value.
- Many other countries have eliminated useless coinage. Most recently, our neighbor to the north, Canada, has abolished its 1 cent piece for precisely the same reasons that we need to.
- There are many options in facilitating this request, including rounding. Rounding would have virtually no effect on commerce, according to economic calculations.
- The US has done this before with other coins.