The penny has become obsolete and should be discontinued. When the United States discontinued the half-cent coin in 1857, it had a 2010-equivalent buying power of 11 cents (NY Times article 4-4-12).
It costs almost two cents to make a single penny, they have limited utility as common tender, and the average American wont even pick one up off the ground. Many other nations have already taken this straightforward step.
Let's inject some Common Sense into America and eliminate the common cent.