Suspension of Program to Cost Taxpayers Billions WASHINGTON, Dec. 13, 2011 /PRNewswire-USNewswire/ -- The Dollar Coin Alliance, a coalition of small businesses, budget watchdogs, transit agencies and labor groups, today called on the Obama Administration to reverse course on its decision to suspend the Presidential $1 Coin program. While the Administration claims this action as a way to save taxpayer money, in fact, the opposite is true:
- If the Administration's concern is reducing waste in our $1 currency supply, the smart solution is to eliminate the antiquated $1 bill. As noted in repeated studies over two decades by the nonpartisan Government Accountability Office (GAO), the continued production of $1 notes costs taxpayers at least $5.5 billion over 30 years.
- The current $1 coin program actually reduces the federal deficit by nearly $300 million each year. According to the U.S. Mint's 2010 Annual Report, the $1 coin program made a net profit of $283 million , all of which was transferred to the Treasury General Fund to reduce government debt.
- This is a transparently political push by the Federal Reserve and the Treasury Department. Both 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.
- In September, Congressman David Schweikert introduced the bipartisan Currency Optimization, Innovation and National Savings (COINS) Act (H.R. 2977), a bill to modernize the nation's currency by eliminating the $1 note – a change virtually every country in the world has made in the past several decades to reduce waste.