A group of lawmakers, including one from Michigan, introduced legislation to end the production of pennies.
This comes nearly three months after President Donald Trump ordered the U.S. Treasury to cease production of the penny.
Reps. Lisa McClain (R-Mich.), Robert Garcia (D-Calif.), and Sens. Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) introduced the “Common Cents Act” on Wednesday, April 30.
The bipartisan legislation proposes rounding cash transactions to the nearest five cents, which is already done in other countries that have had similar currency reforms, according to the release.
Here’s what the bill proposes for rounding up and rounding down:
- Rounding down: “In any case in which the total transaction amount, including any taxes, ends with 1 cent, 2 cents, 6 cents, or 7 cents as the final digit, the amount of cents in the sum shall be rounded down to the nearest amount divisible by 5 for any person seeking to make payment with legal tender.”
- Rounding up: “In any case in which the total transaction amount, including any taxes, ends with 3 cents, 4 cents, 8 cents, or 9 cents as the final digit, the amount of cents in the sum shall be rounded up to the nearest amount divisible by 5 for any person seeking to make payment with legal tender.”
- Exceptions: “Subsection (a) shall not apply to— (1) transactions in which the total transaction amount, including any taxes, totals $0.01 or $0.02, where such transactions shall be rounded up to $.05 for any person seeking to make payment with legal tender; or (2) any transaction for which payment is made by any demand or negotiable instrument, electronic fund transfer, check, gift card, money order, credit card, or other like instrument or method."
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“Pennies are a waste of taxpayer dollars,” McClain said. “It doesn’t make sense to spend millions each year minting coins that so few people actually use. President Trump’s common-sense idea should become law. We are taking a decisive step toward fiscal responsibility and updating our currency for the 21st century.”
According to the U.S. Mint, production costs almost four cents per penny.
The lawmakers say this move will get rid of wasteful government spending and update the country’s currency system “to match reality.”
“The penny is outdated and inefficient and no longer serves the needs of our economy,” Gillibrand said. “By suspending its production, we can reduce government spending, streamline transactions, and move toward a more practical financial system. It’s time to invest in a future that works for the 21st-century economy, and that starts with suspending production of the penny.”
To view the bill, visit here.