Falling off the so-called Fiscal Cliff could significantly impact Memphis according to local leaders.
"There's so many things that would just really have a really damaging effect to our city," said Memphis Mayor A C Wharton. "All of the things we're doing to bring our city back would be placed in jeopardy."
If Congress and President Barack Obama can't agree to a compromise to avoid the Fiscal Cliff, residents in the Mid-South would have to deal with higher taxes and less take home pay. In addition, mandated cuts to discretionary government programs could hit the city hard.
U.S. Congressman Steve Cohen (D-Memphis) will fly back to Washington, D.C. on Sunday. Speaker of the House John Boehner (R-Ohio) is calling the House back into session in case leaders broker a deal.
Rep. Cohen said he doesn't know how close they are to a compromise.
"The hope is that they'll be something coming out of the Senate that the Democratic members of Congress, at least the great majority, and the reasonable members on the Republican side can vote for and save the American people from this tax increase," Rep. Cohen said.
Congressman Cohen's concerned about the impact of a tax increase on Memphians.