Coins have not kept up
Why We Are Removing Useless Currency
For too long, the U.S. has been weighed down by outdated and inefficient coinage. The penny and nickel cost more to produce than they’re worth, and even the dime serves little purpose in modern transactions. Inflation has rendered these coins obsolete, and their continued use wastes time and is simply annoying to deal with.
•Historical Precedent: The U.S. eliminated the half penny in 1857 when it was deemed unnecessary due to inflation. At the time, a half penny could still buy something of value, yet we decided it was too insignificant to keep around. Today, if adjusted for inflation using the Consumer Price Index (CPI), the half penny would be worth approximately 18 cents in 2024 dollars.
•CPI in 1857: 8.7
•CPI in 2024: 315.0
Half Penny Value in 2024: ~.18c
If the half penny was eliminated at that value, the modern penny, nickel, and dime are far more overdue for removal.
•Production Costs: A penny costs 2.72 cents to make, and a nickel costs 10.41 cents (as of 2023). This results in millions of dollars in losses every year for frankly inconvenient change.
•Transaction Delays: Handling small coins slows down purchases, from cash registers to vending machines. Removing them would streamline payments and improve efficiency.
•Rounding Works: Countries like Canada, Australia, and New Zealand have already eliminated smaller coins and round transactions to the nearest 5 or 10 cents without issue.
•Minimal Consumer Impact: Rounding cash transactions to the nearest quarter has no meaningful economic downside. Digital transactions would remain unchanged.
The S.P.A.R.E. Act ensures we modernize our currency system, save taxpayer money, and make everyday transactions smoother for Americans.
Democrats
Video Coming soon!
Republicans
Video Coming soon!
TITLE: Simplifying Payments and Rounding Efficiency Act (S.P.A.R.E.)
The Bill: SPARE
Simplifying Payments and Rounding Efficiency Act
Section 1: Elimination of Inefficient Coinage
(a) The United States Mint shall immediately cease production of the penny, nickel, and dime.
(b) Existing coins will remain legal tender but will be gradually phased out of circulation.
Section 2: Rounding Standards for Cash Transactions
(a) All cash transactions will be rounded to the nearest $0.25 (quarter-dollar increment).
(b) Rounding shall apply only to final transaction totals and not individual item prices.
(c) Digital transactions remain unaffected—prices can still be set at any value.
Section 3: Adjustments for Businesses and Consumers
(a) The Department of the Treasury will provide businesses with guidelines on proper rounding procedures.
Section 4: Cost Savings and Efficiency Report
(a) The Government Accountability Office (GAO) shall publish a report three years after implementation detailing cost savings and economic impacts.
Section 5: Implementation Timeline
(a) The phasing out of the penny, nickel, and dime shall begin immediately upon passage.
(b) Full rounding implementation shall occur within 12 months of enactment.
SPARE Act Certification Quiz
Do you understand why it's time to drop the dime?
Get all questions right to be certified!