Miner spending

[TKeenan]

Lets say I reference a transaction output of 1 bitcoin in my new transaction I intend to send to Alice.  I send Alice .5 bitcoin and I take as change .499 leaving .001 as the mining fee.  Both Alice and I will reference those outputs as new inputs on our next transaction.  But how does the miner reference his .001 when he wants to spend that?  He can't point to an output of a transaction hash.  How is this miner fee reference in future transactions?

[achow101]

The transaction fee is included as part of the coinbase transaction. If you look at any block's transactions, you will see that the coinbase transaction is little over 25 BTC. The extra on top of the 25 are all of the transaction fees. This way the miner can spend those Bitcoins.