S.1525 - Common Cents Act (119th Congress)
Summary
The Common Cents Act proposes to eliminate the minting of pennies and mandates rounding cash transactions to the nearest 5 cents. It directs the Secretary of the Treasury to cease penny production within one year of enactment, except for numismatic collector coins. The bill also outlines specific rounding rules for cash transactions, impacting how consumers pay for goods and services.
Expected Effects
The immediate effect would be a change in how cash transactions are handled, with potential savings in government spending due to the cessation of penny production. Consumers would experience slight price adjustments in cash transactions due to rounding. Over time, this could lead to a reduction in the use of physical currency.
Potential Benefits
- Potential cost savings for the government by eliminating penny production.
- Simplification of cash transactions for consumers and businesses.
- Reduced demand for physical pennies, potentially easing strain on metal resources.
- Increased efficiency in retail transactions by reducing the need to handle pennies.
- Numismatic collectors would still have access to newly minted pennies.
Most Benefited Areas:
Potential Disadvantages
- Potential for consumer confusion regarding rounding rules.
- Possible perception of price increases due to rounding up in some transactions.
- Inconvenience for individuals who prefer exact change transactions.
- Potential impact on low-income individuals who rely on cash transactions.
- Psychological resistance to the elimination of a familiar currency unit.
Constitutional Alignment
The bill appears to align with the constitutional powers granted to Congress regarding coinage and currency regulation, as outlined in Article I, Section 8, Clause 5 of the Constitution. This clause grants Congress the power to "coin Money, regulate the Value thereof, and of foreign Coin." The bill does not infringe upon individual liberties or rights protected by the Bill of Rights. The provision to continue minting pennies for numismatic purposes also demonstrates a consideration for historical preservation, which can be seen as indirectly supporting 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).