President Trump's Directive to Stop Minting New Pennies
President Trump directed the Treasury Department to stop minting new pennies due to production costs, but Congress authorizes the U.S. Mint's coin manufacturing. The penny has 'negative seigniorage,' costing more to produce than its value. Various lawmakers have proposed eliminating or suspending penny production, with concerns about environmental impact, low usage, and minimal value. Some worry eliminating pennies could lead to a 'rounding tax' on cash transactions.
Key Points
- Pennies cost more to produce than their face value
- Congress oversees minting of coins, not the President alone
- Debate over eliminating pennies due to low usage and high production costs
- Environmental concerns over penny production and usage
Pros
- Potential cost savings for the government
- Focus on higher-denomination coins
- Environmental impact considerations
Cons
- Concerns about 'rounding tax' on cash transactions
- Impact on fundraising methods like penny drives
- Possible nostalgia factor