Can a $ 1 trillion coin set the debt limit? Eccentric Law Maybe Says | Saint-Louis Business News
Specifically, the law states that the Secretary of the Treasury “may mint and issue platinum bullion coins and evidence platinum coins in accordance with specifications, models, varieties, quantities, denominations and inscriptions as the secretary, at his discretion. , may prescribe from time to time. time.”
It is that moment, in the opinion of the proponents of the coin. But Treasury Secretary Janet Yellen, the White House and some Democrats rejected the idea on Tuesday, just as former leaders did when the going got tough and sweeping quick fixes emerged.
“The only thing wackier would be a politically inflicted defect,” Senator Mark Warner, D-Va, said of the coin.
Yellen said: “What is needed is for Congress to show that the world can count on America to pay its debt.” A platinum coin, she told CNBC, “is really a gimmick.”
Of course it issaid Rohan Gray, law professor at Willamette University and expert in tax policy.
“The fact that (the coin) represents an accounting gadget is a source of its strength, rather than a weakness,” Gray wrote in a 2020-21 study in the Kentucky Law Journal. “The idea of ’tackling an accounting problem with an accounting solution’ makes perfect sense … the debt ceiling itself can be seen as a big, ill-conceived accounting gimmick.”