New Bill Could End Penny Production in the U.S.

(Mix 93-1) When did you last use a penny to pay for something?

For me, it's been quite a while. I have quite a few stashed away with dimes, nickels, and quarters in the console of my truck, but I don't usually pay with them when I'm using cash. I'll just give the cashier a bill and get the change back if I'm not using my card.

Going forward, paying with pennies could be a thing of the past. If approved by Congress, the penny could go out of production, and the price of items could change to reflect the penny's demise.

The 'Common Cents Act' looks to discontinue the production of the penny

Bipartisan support is shown for this act. Two U.S. Representatives and Senators have proposed a bill that would instruct the Treasury Department to stop production of the penny within a year of the bill's passage.

The proposed bill has strict language on how businesses handle cash transactions by requiring the total of the transaction to be rounded to the nearest five cents, based on the final digit, which would either round up or down. There would be no rounding and no change to credit card transactions, electronic payments, or other non-cash payments.

This proposed bill comes three months after President Trump directed the Treasury Department to stop producing pennies because of the cost of production. He did not have the authority to do this, but if this bill passes, the penny's days will be numbered. As it stands right now, it costs more than three cents to make the penny (NewsNation), which has less value and costs taxpayers additional money to create.

The US wouldn't be the first to get rid of the penny

Many other countries no longer use their lowest denomination of currency, including Canada, which retired its penny in 2012. There was a time when the US had a half-cent coin. This coin was retired in 1857.