H.R.3074 - Common Cents Act (119th Congress)
Summary
H.R.3074, the Common Cents Act, proposes to eliminate the minting of pennies and mandates the rounding of cash transactions to the nearest five cents. The bill directs the Secretary of the Treasury to cease penny production within one year of enactment, with an exception for numismatic collectors. It also stipulates rules for rounding cash payments up or down to the nearest nickel.
Expected Effects
If enacted, this bill would remove the penny from circulation, potentially simplifying cash transactions. Consumers would experience slight price adjustments due to the rounding rules. The Treasury would save money on penny production, though this would be offset somewhat by the need to continue producing pennies for collectors.
Potential Benefits
- Reduced government spending on penny production.
- Simplified cash transactions for consumers and businesses.
- Potential time savings at the point of sale.
- Reduced demand for physical coin storage.
- Environmental benefits from reduced mining and transportation of materials for penny production.
Potential Disadvantages
- Potential for consumer confusion regarding rounding rules.
- Possible price increases for some transactions due to rounding up.
- Psychological resistance to the elimination of a familiar coin.
- Impact on businesses that rely on precise pricing strategies.
- Potential for short-term disruption as the economy adjusts to the change.
Constitutional Alignment
The bill appears to align with the Constitution. Article I, Section 8 grants Congress the power to coin money and regulate its value. The bill does not appear to infringe on any specific constitutional rights or limitations. The provision for numismatic coins acknowledges the historical and collectible value of currency, which could be seen as promoting the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).