Altogether, California and Nevada credit unions contribute nearly $18 billion annually to the economy through job creation and spending and $2.3 billion in combined federal, state and local tax revenues, according to industry data recently compiled and released by the Credit Union National Association (CUNA).
The importance of this $20.3 billion total/combined economic-fiscal impact cannot be overstated as credit unions and their members continue working and operating as a key part of today’s economy.
Using the Impact Analysis for Planning (IMPLAN) input-output economic model — which combines direct, indirect, and induced impacts from credit union operations and service to members — CUNA analyzed end-of-year 2021 financial call report figures published by the National Credit Union Administration (NCUA) and other data, including:
- Credit unions’ employment and earnings (workers hired and goods/services purchased to support operations).
- Credit unions’ direct expenditures (demand for goods and services from other sectors of the economy, and subsequent rounds of spending in additional sectors).
- Credit unions’ expenditures by employees directly and indirectly (the household-spending effect).
You can view the California report and the Nevada report.
CA and NV Job Market & Economic Impact
In California, 77,000 jobs were supported — 32,000 directly, 13,400 indirectly, and 31,600 that were induced. From a dollar perspective, locally headquartered credit unions made a more than $17.4 billion economic impact — $8.44 billion directly, $2.8 billion indirectly, and $6.19 billion induced.
In Nevada, nearly 2,500 jobs were supported — 1,200 directly, 443 indirectly, and 844 that were induced. From a dollar perspective, locally headquartered credit unions made a more than $497 million economic impact — $280 million directly, $72 million indirectly, and $146 million that was induced.
California CUs: Federal, State & Local Tax Revenue
In California, credit unions and their members’ contributions to federal, state, and local tax revenues totaled $2.21 billion:
- Federal (in California): $744.2 million in direct taxes paid by credit unions and their employees (FICA taxes, personal income taxes, excise taxes, etc.).
- Federal (in California): $388.8 million in indirect taxes generated by credit unions through purchases of third-party contracting goods and services (office supplies, information technology, supplies, etc.).
- Federal (in California): $107.6 million in additional taxes generated by consumers spending in the local economy as a result of benefits from better interest rates on loans and deposits at credit unions, as well as lower fees.
- State and Local (in California): $345 million in direct taxes paid by credit unions and their employees (sales taxes, property taxes, license fees, severance taxes, personal income taxes, etc.).
- State and Local (in California): $420.6 million in indirect taxes generated by credit unions through purchases of third-party contracting goods and services (office supplies, information technology, supplies, etc.).
- State and Local (in California): $202.2 million in additional taxes generated by consumers spending in the local economy as a result of benefits from better interest rates on loans and deposits at credit unions.
- (Any new tax on California credit unions is a direct tax on their 13.3 million consumer-owners who already bear a substantial tax burden: credit union members in California paid $195.3 billion in state and federal income taxes in the most recent tax year.)
Nevada CUs: Federal, State & Local Tax Revenue
In Nevada, credit unions and their members’ contributions to federal, state, and local tax revenues totaled $56.4 million:
- Federal (in Nevada): $26.2 million in direct taxes paid by credit unions and their employees (FICA taxes, personal income taxes, excise taxes, etc.).
- Federal (in Nevada): $7.2 million in indirect taxes generated by credit unions through purchases of third-party contracting goods and services (office supplies, information technology, supplies, etc.).
- Federal (in Nevada): $1.7 million in additional taxes generated by consumers spending in the local economy as a result of benefits from better interest rates on loans and deposits at credit unions, as well as lower fees.
- State and Local (in Nevada): $5 million in direct taxes paid by credit unions and their employees (sales taxes, property taxes, license fees, severance taxes, personal income taxes, etc.).
- State and Local (in Nevada): $11.8 million in indirect taxes generated by credit unions through purchases of third-party contracting goods and services (office supplies, information technology, supplies, etc.).
- State and Local (in Nevada): $4.5 million in additional taxes generated by consumers spending in the local economy as a result of benefits from better interest rates on loans and deposits at credit unions.
- (Any new tax on Nevada credit unions is a direct tax on their 381,000 consumer-owners who already bear a substantial tax burden: credit union members in Nevada paid $5 billion in state and federal income taxes in the most recent tax year.)
