Untaxed corporate profits of U.S. companies operating overseas stands at roughly $2.1 trillion, by some accounts. In turn, Paul, R-Ky., and the Nevada Democratic Senate majority leader have proposed a one-time tax repatriation holiday to encourage those companies to bring that money back to the United States, possibly creating a short-term Treasury windfall of up to $60 billion in the next three years.
"I think this is a win-win situation. Lower tax and bring in more revenue," Paul said on "Squawk Alley."
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Though terms of the proposal are still being worked out between parties, Paul said the tax rate will fall below 10 percent. He also said the tax holiday would wrap into the transportation bill, thereby allocating the increased revenue toward building new roads and bridges.
At this point, talks are being held up by some on Capitol Hill who have the "traditional Washington mentality" of either doing a big tax reform bill or nothing at all, Paul complained.
"For the four years I've been here, we've gotten nothing. I say break this baby up into small pieces. Do this on the transportation bill in the next three weeks, and we'll do something that Republicans and Democrats both like: Lower a tax, bring in more revenue and build more roads," he said.
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—By CNBC's Drew Sandholm