Opens in a new tab

Could the dollar coin help the deficit Super Committee save a few bucks?

November 6, 2011

I'm not a fan of cash. I like to use my debit or credit card whenever possible. I like how technology has made payment transactions possible via key fobs and smartphones.

I don't mind, however, coins even though I don't typically carry them. Instead, I collect pennies, nickels, dimes and quarters and periodically take coin rolls to my bank for deposit in my account.

Dollar-CoinBut if some lawmakers get their way, I might be adding dollar coins to that dish on my dresser that holds miscellaneous change.

Yes, numismatistic readers, you're right. The dollar coin is already being made.

But American consumers, not to mention businesses and cash register makers, don't really like this form of currency. More than $1 billion worth of $1 coins are stored in plastic bags in vaults across the country.

Now, however, some folks are arguing that the coin offers an easy way to pocket not only more change, but some federal deficit savings.

Super committee coin consideration? Dollar coin fans are suggesting that the Joint Select Committee on Deficit Reduction make us embrace the coin by doing away with the dollar bill and making $1 coins mandatory as part of any plan it comes up with by Nov. 23.

Coin advocates point out that eliminating the paper bill, each of which has to be replaced every three or so years, and using the more durable dollar coin instead could save the Treasury $5.5 billion over 30 years.

18 Days Super Committee CountdownThere's no formal super committee proposal (that we know of) to ditch the dollar.

But there is an advocate of metal money on the deficit panel.

Republican Rep. Jeb Hensarling of Texas, a co-chair of the bipartisan 12-member committee, has cosponsored a $1 coin proposal.

H.R. 2977, the Currency Optimization, Innovation, and National Savings (COINS) Act, would phase out the paper dollar, replacing it with a dollar coin in four years or as soon as $600 million worth of dollar coins are in circulation.

But the flip side of the currency debate is represented on the super committee, too.

Two days after Hensarling's bill was dropped in the hopper, a counter measure was introduced in the Senate to stop production of the dollar coin.

S. 1624, the Currency Efficiency Act of 2011, is cosponsored by super committee member Sen. John Kerry, Democrat of Massachusetts.

The Senate measure would prevent the minting of $1 coins when a surplus of them exists. Kerry and his fellow Massachusetts Senate colleague Republican Scott Brown, argue that the $1.2 billion in uncirculated dollar coins sitting in Federal Reserve vaults are adding to storage costs. 

Coin fans, foes: This being Washington, D.C., special interests on both sides have lined up behind each bill.

Opponents of the Brown/Kerry bill contend that the pair came up with the bill simply to protect Crane & Co. That Massachusetts-based firm is the exclusive producer of the paper used to print U.S. currency.

Americans for George note that Americans are united in their rejection of the $1 coin.

And the Dollar Coin Alliance naturally favors the House bill.

Where do you stand? Would you surrender your paper Washingtons in order to save Uncle Sam some money?

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
Getting ready for the year-end tax countdown

October 17, 2026

Just 2½ months left in 2026. Time to start making tax plans and moves to…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • $5.5 billion over 30 years? Isn’t that like me saving $4.50 every year? It is ridiculous to even base a decision on that.

Leave your comment