House passes Common Cents Act to help with phasing out the penny. How cash purchases would work if the bill becomes law

The penny is already disappearing from circulation. Now, Congress is trying to determine what comes next.

On July 14, the House of Representatives passed the Common Cents Act (1), authorities that would found nationwide rules for handling currency purchases arsenic the United States phases retired the one-cent coin. The measure present heads to the Senate, wherever its aboriginal remains uncertain.

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The authorities comes months aft the U.S. Mint produced its last penny successful precocious 2025. According to the U.S. Mint (2), it costs astir 4 cents to manufacture a azygous penny, making it 1 of the government's astir costly coins to nutrient comparative to its value.

The caller authorities is little astir eliminating the penny than creating wide rules for a state that's already moving abbreviated connected them.

National Restaurant Association Chief Advocacy Officer Sean Kennedy told CBS News that phasing retired the penny has been cumbersome for immoderate businesses. He said restaurants and retailers tin look ineligible liability if they cannot supply nonstop change, adjacent erstwhile they circular successful the customer's favor.

The National Restaurant Association estimates that inconsistent rounding practices could outgo restaurants up to $168 cardinal a twelvemonth (3), but says a national modular would springiness businesses certainty arsenic pennies go harder to find. The relation besides reported that astir 1 successful 4 edifice customers inactive pays with currency (4), meaning the contented affects millions of mundane transactions.

How currency payments would alteration

If the Common Cents Act becomes law, lone currency transactions would beryllium rounded. Prices, taxes and physics payments would inactive beryllium calculated to the nonstop cent. The rounding would hap lone aft the last full is calculated (5).

Here's however the projected strategy would work:

• Totals ending successful 1, 2, 6 oregon 7 cents would circular down to the nearest nickel

• Totals ending successful 3, 4, 8 oregon 9 cents would circular up to the nearest nickel

• Totals already ending successful 0 oregon 5 cents would enactment the aforesaid

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Prices themselves would not person to change. A store could inactive advertise an point for $9.99. Sales taxation would inactive beryllium calculated usually and your receipt would inactive amusement the nonstop total. The lone quality would beryllium the magnitude you manus implicit oregon person successful alteration if you wage with cash.