The Hill: Bipartisan Senate group tries again to scrap the paper dollar
Bipartisan Senate group tries again to scrap the paper dollar
A bipartisan group of senators has reintroduced legislation that would require the United States to transition away from using paper dollars, and instead use dollar coins.
The Coins Act, from Sens. Tom Harkin (D-Iowa), John McCain (R-Ariz.), Mike Enzi (R-Wyo.), Tom Coburn (R-Okla.) and Mark Udall (D-Colo.), would require the U.S. to stop printing paper dollar bills after four years, or when 600 million dollar coins are in circulation, whichever comes first.
Moving to the dollar coin is a change that senators say would help save the government roughly $200 to $500 million, which is the estimated added cost of keeping less durable paper dollars in circulation.
“The benefits of the dollar coin have long been recognized by reputable sources such as the GAO [Government Accountability Office] as a smart investment for our country,” Harkin said Thursday. “The experiences of countries around the world reveal that transitioning to dollar coins will generate significant savings to taxpayers without disrupting businesses or consumers.”
Supporters note that other developed countries have already made the switch to higher denomination coins, and that they have saved even more money than first estimated by making the switch.
Aside from saving money, supporters also argue that dollar coins would be more environmentally friendly.
Former Rep. Jim Kolbe (R-Ariz.), who co-chairs the Dollar Coin Alliance, said the proposal is an easy way to save money.
“In a time of fiscal restraint, Congress must take a hard look at the billions sitting right in front of them,” Kolbe said this week. “This is a common-sense budget solution that saves billions without raising a single tax or cutting a single program.”
The other co-chairman, former Rep. Tim Penny (D-Minn.), added that most Americans are ready for the change.
But the bill is not without some controversy. When similar legislation was passed in the last Congress, it prompted Massachusetts senators Scott Brown (R) and John Kerry (D) to introduce a bill to protect the paper dollar from what they called the “unpopular $1 coin.”
Massachusetts is home to Crane & Co., the only supplier of paper used to produce $1 bills.
However, Brown was not reelected, and Kerry is now serving as Secretary of State. Sens. Mo Cowan (D-Mass.) and Elizabeth Warren (D-Mass.) had not proposed anti-dollar coin legislation as of this week.
