Three reasons why the Obama Administration’s
Dollar Coin Decision is a Budget Loser.
1. The Obama Administration’s decision to cancel the Presidential $1 coin program will cost taxpayers $383 million per year.
The U.S. Mint made $383 million in profit through the $1 coin program in FY 2011 – that’s money that goes directly to pay down the national debt. Eliminating the program means hundreds of millions of dollars per year in additional deficit spending. If the Administration’s concern is reducing waste in our $1 currency supply, the smart solution is to eliminate the antiquated $1 bill.
2. The Mint’s circulating coinage program would be in danger of operating in the red without the $1 coin
The $1 coin was responsible for 110 percent of the Mint’s Circulating Coin program profits and generated 73 percent of the Mint’s profit overall. Without the program, the government might need to make up the Mint’s shortfall through additional spending. Both the Federal Reserve and the Treasury have previously urged Congress to eliminate the $1 coin program in order to maintain profits generated by the continued production of $1 bills. Having failed, Treasury has now unilaterally acted to stop $1 coin production, usurping Congress’ authority in U.S. currency and coin matters under the Presidential Dollar Coin Act.
3. This decision makes no cents! The real solution is to eliminate the wasteful
The GAO has highlighted the cost savings of a full $1 coin transition five times during the past 20 years – their latest report found savings of $5.5 billion over 30 years. The GAO, Citizens Against Government Waste, USA Today, Chicago Tribune and Washington Post all agree – it’s time to move to a $1 coin.