The "Common Cents Act" eliminates the production of pennies for general circulation, mandates cash transaction rounding to the nearest five cents, and ensures all U.S. coins and currencies remain legal tender.
Cynthia Lummis
Senator
WY
The "Common Cents Act" would halt the minting of one-cent coins for general circulation, while still allowing them for numismatic collections. This bill would also require cash transactions to be rounded to the nearest five-cent increment, but excluding transactions made via checks, electronic transfers, or credit cards. All U.S. coins and currencies, including one-cent coins, will remain legal tender for all debts, taxes, and dues.
Penny Pinching No More? New Bill Proposes Axing the One-Cent Coin and Rounding Cash Totals to the Nickel
Alright, let's talk about a bill called the 'Common Cents Act.' The main idea here is to stop making new pennies for everyday use within a year after the bill would become law. It also sets up a system for rounding your total bill to the nearest 5 cents if you're paying with cash. So, if your coffee is $2.52, you'd pay $2.50. If it's $2.53, you'd pay $2.55.
The Penny's Farewell Tour
So, what's the deal with the penny? According to Section 2 of this Act, the U.S. Treasury would hit the brakes on minting and issuing one-cent coins for general circulation no later than one year after the bill becomes law. This is a direct instruction to stop production, even if other laws like 31 U.S.C. 5112(a) (which lists the coins the Treasury is authorized to make) say otherwise. But don't toss your penny jar just yet! Existing pennies will still be legal tender – meaning you can still use them to pay for stuff. And for the coin collectors out there, the Treasury will keep making special pennies just for you, as long as the sales cover the cost of making them, as per 31 U.S.C. 5132(a).
The Cash Round-Up (or Down)
Now for the part that might change how you handle cash, and maybe even your business's till: Section 3 introduces rounding for cash transactions. If your total bill ends in 1, 2, 6, or 7 cents, the final amount gets rounded down to the nearest nickel. For example, a $10.72 purchase becomes $10.70. If your total ends in 3, 4, 8, or 9 cents, it rounds up to the nearest nickel. So, that $10.73 purchase becomes $10.75. Over time, this could mean you save a few cents here and there, or pay a few extra, depending on how your totals land. Businesses will also need to adjust their cash registers or procedures for this. There's a small twist for really tiny totals: if your bill is just 1 or 2 cents, it automatically rounds up to 5 cents. This whole rounding system kicks in one year after the Act is enacted.
Cards, Checks, and Keeping it Clear
Before you start worrying about your digital payments, Section 3 is pretty clear: this rounding rule only applies if you're paying with physical cash. If you're swiping a credit card, using a debit card, writing a check, tapping your phone, or even using a gift card, the exact amount is what you'll pay – no rounding involved. The idea seems to be to simplify cash handling specifically because, well, there won't be any new pennies to make exact change with for those transactions.