Press Release: Federal Reserve Staff Working Paper Misrepresents Savings and Benefits of Dollar Coin
FEDERAL RESERVE STAFF WORKING PAPER MISREPRESENTS SAVINGS AND BENEFITS OF DOLLAR COIN
Fed Ignores Billions in Savings for Taxpayers to Protect Its Profits from the Dollar Note
WASHINGTON, DC (December 12, 2013)– A Federal Reserve staff working paper, released today, falsely argues against the dollar coin as a common sense solution to the deficit – when in fact multiple reports show that currency modernization would save taxpayers upwards of $13 billion without raising a single tax or cutting a single program. The Federal Reserve makes a profit off of the sale of U.S. paper currency, including the dollar bill.
“The Fed earns billions in profits each year from paper currency, only a portion of which they return to Treasury,” said Shawn Smeallie, Executive Director of the Dollar Coin Alliance. “The $13 billion in estimated savings earned from the dollar coin would all go from the Mint to the taxpayer. Its no surprise the Fed is fighting currency modernization, when you understand their motives behind this report. The best interests of taxpayers, not the Fed, must come first.”
The Government Accountability office, Congress’ own watchdog, has released 10 reports over the past 23 years advocating on behalf of the dollar coin as way to eliminate government waste. The recent staff paper by the Federal Reserve is an attempt to discredit several economic studies that estimate billions in savings from the dollar coin. One study from a former Treasury Department and Senate Banking economist showed the dollar coin would save the government $13.8 billion in addition to many societal benefits that come from currency modernization.
Contrary to the Fed’s arguments, many businesses have already made the investments necessary to handle dollar coins, in anticipation of eventual modernization. Taxpayers and business stand to benefit enormously from currency modernization. In fact, according to a poll by the Wall Street Journal, 62 percent of Americans support eliminating the wasteful dollar bill in favor of the dollar coin when informed of the savings potential.
Support for the coin comes from small businesses, budget watchdogs, transit agencies, and labor groups dedicated to saving American taxpayers billions of dollars by transitioning to a dollar coin. The elimination of the dollar bill and transition to the coin has been endorsed by a broad coalition of supporters, including the Domenici-Rivlin Debt Reduction Task Force, and editorial boards from across the country such as The New York Times, The Washington Post, The Chicago Tribune, Los Angeles Times, Wisconsin State Journal, and USA Today.
The Currency Optimization Innovation and National Savings (COINS) Act (S. 1105 and H.R. 3305) was introduced earlier this year as a way to save taxpayers billions without cutting a single program or raising a single tax. The bipartisan COINS Act has been endorsed by numerous budget watchdogs, including the Domenici-Rivlin Debt Reduction Task Force, former directors of the U.S. Mint and editorial boards across the country.
Contact: Bryan DeAngelis