09/08/2010 06:42 pm ET | Updated May 25, 2011

Jobs, Tax Cuts and Community Investment

Creating jobs while transforming our economy into one that emphasizes production and investment over consumption and debt is essential to the long term prosperity of America. In order to do so, we must understand that our economy runs on people, energy and trade and that we must invest in all three. I have a proposal that will help create this transformation through investment in our communities while cutting taxes.

BRICs (Bonds that Rebuild and Invest in our Communities). I will introduce legislation in the 112th Congress which will allow individuals to invest pre-tax dollars in qualified municipal bonds. This legislation will:

1. Substantially cut federal income taxes for all BRIC investors;
2. Create significant investment in our schools, roads and other infrastructure;
3. Have a stimulative effect on our economy, with local control and decision making;
4. Create an effective return of over 40% in the year of purchase for those in the top tax bracket, assuming a tax rate of 39.6 % (offsetting tax increases due to expiration of tax cuts for those who make less than $400,000) and substantial tax cuts for all investors in BRICs. BRICs must be held for one year to qualify, with a limit of $10,000 per investor.