Have you seen the 'penny phase-out' signs at McDonald's?

CORPUS CHRISTI, Texas — The U.S. Mint is already slowing down the issuance of pennies , according to Dr. Patrick Crowley, a professor of economics at Texas A&M University-Corpus Christi. This gradual discontinuation is creating what economists are calling a "round-up tax" that could impact shoppers' wallets.

"Already economists are calling this the 'round-up tax,'" Dr. Crowley said. Have you seen the 'penny phase-out' signs at McDonald's?

The phase-out comes down to simple economics. According to the U.S. Mint's annual report from FY2024 , it costs 3.69 cents to make and distribute one penny.

"This has caused the U.S. Treasury to not make money. In fact, to lose money," Dr. Crowley said.

That loss amounted to $85.3 million in FY24, making the penny an expensive coin to maintain.