Fiscal Cliff could affect those making $200k or more - Action News 5 - Memphis, Tennessee

Fiscal Cliff could affect those making $200k or more

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MEMPHIS, TN -

(WMC-TV) - As the looming Fiscal Cliff approaches, we're getting a closer look at whom and what it will impact.

Some zip codes in the Mid-South could face the brunt of a proposed "tax increase on the wealthy."

The president's solution to prevent a deep recession when the cliff hits is to impose a surtax of .9 percent on the wealthiest Americans.

And many of those people are right in your back yard.

All of the Fiscal Cliff talk has many Americans scratching their heads.

The bottom line: When the clock strikes midnight on December 31, several tax cuts expire at the same time that a series of spending cuts go into effect.

If government leaders do not find compromise in time, the perfect storm will form and Americans could fall over the Fiscal Cliff into a deep recession.

Monday, President Barack Obama met with House Speaker John Boehner to seek compromise.

Meanwhile, we took a look at zip codes most affected if Obama gets his way to increase taxes on the wealthiest 2 percent.

Individuals making more than $200,000 or couples making a combined $250,000 per year will be affected.

Mary Delk lives in the 38117 East Memphis zip code with many tax returns in that range.

"It would greatly impact me. I'm not looking forward to a tax increase, especially that steep," said Delk.

Carl Smith would also be impacted.

"Hopefully, the government can work things out and come to something that will be more conclusive without putting more burden on the taxpayer," said Smith.

In Shelby County, the top three zip codes include two in Germantown (38138, 38139) and one in Collierville (38017).

In DeSoto County, Southaven (38671), Olive Branch (39654) and Lake Cormorant (39641) will be impacted most.

In Crittenden County, West Memphis has two zip codes (72301, 72303) and then Marion has one (72301).

Republicans prefer cuts to social services.

"We don't want Medicare, Medicaid and Social Security to be used as part of a deficit reducing bill," said Jean Nofles, who is retired.

Regardless of which zip code you live in, your Fiscal Cliff taxes depend upon your income.

Click here to use a Fiscal Cliff tax policy calculator to see how much you could end up paying if an agreement is not made.

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