Press Release

Tax Cut Postcards Mailed to Small Businesses

IRS Sends 4 Million Postcards on Health Care Tax Cuts

Congressman Henry Cuellar (TX-28) today announced that the Internal Revenue Service (IRS) is mailing 4.4 million postcards to the nation’s small businesses to inform them of tax cuts included in health care reform. Postcards will be delivered over the next two weeks to over 292,500 small businesses across Texas.
Congressman Henry Cuellar (TX-28) today announced that the Internal Revenue Service (IRS) is mailing 4.4 million postcards to the nation’s small businesses to inform them of tax cuts included in health care reform. Postcards will be delivered over the next two weeks to over 292,500 small businesses across Texas.

“This is news you can use for Texas small businesses,” said Congressman Cuellar. “Thousands of small businesses will immediately qualify for these valuable new tax cuts if they’re providing health insurance to their employees. So we are urging every small employer to take advantage of these cuts if they qualify.”

Included in the Patient Protection and Affordable Care Act approved by Congress, and signed into law last month, are immediate tax provisions aimed at supporting small businesses and tax exempt organizations that provide health insurance to their employees. Businesses with fewer than 25 employees and with average annual wages of $50,000, that provide health insurance to their workers will qualify for tax cuts worth up to 35 percent of what they pay towards their employees’ premiums. In 2014, this tax cut increases to 50 percent for small businesses, generating thousands of dollars in savings for each small business.

Eligible tax-exempt organizations also benefit from tax cuts of up to 25 percent of their share of employee health insurance premiums. It’s estimated that 60 percent of the nation’s smaller employers will qualify for these tax cuts.

“Our post card mailing, which is targeted at small employers, is intended to get the attention of small employers and encourage them to find out more,” said IRS Commissioner Doug Shulman. “We want to make sure small employers across the nation realize that effective this tax year they may be eligible for a valuable new tax credit.”

This April, Congressman Cuellar toured the 28th Congressional District of Texas and met with several small business owners with fewer than 100 employees to discuss these immediate tax benefits and affordability credits that will help employers provide health insurance to their employees. In 2014, a state-based health insurance exchange will be created in Texas to help thousands of small businesses band together to purchase private health insurance at cheaper rates.

“Small businesses are the backbone of the American economy,” said former small business owner Congressman Cuellar. “These are valuable, tangible tax cuts that make a difference on the balance sheet of everyday small businesses and they will benefit their hard-working employees.”

For more information on these small business tax cuts and the affordability credits included in health care reform, please visit Congressman Cuellar’s health care website at /Issues/Issue/?IssueID=3834.

To calculate how small businesses can benefit from health care reform and these specific tax cuts, feel free to use the following tax credit calculator provided by the Small Business Majority organization: http://smallbusinessmajority.org/tax-credit-calculator/



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Congressman Henry Cuellar is a member of the U.S. House Homeland Security, Agriculture, and Government Oversight & Reform Committees in the 111th Congress. Accessibility to constituents, education, health care, economic development, and national security are his priorities. Congressman Cuellar is also a Senior Whip and member of the Blue Dog Coalition