On Tuesday, Obama gave a speech where he proposed lowering the corporate tax rate from 35 percent to 28 percent. He also proposed taxing offshore corporate accounts and using that money for investments in infrastructure.

“We can use the money we save by simplifying the tax code to create jobs right away – jobs that can never be outsourced,” Reid said. “Both Republicans and Democrats get something they want, and the economy gets the shot in the arm it needs.”

Republicans have complained that Obama’s “grand bargain” isn’t good enough. They’ve proposed using the revenue generated from the tax code reforms to lowering rates for individuals.

Reid said it's important for the government to make "targeted investments" in education and infrastructure to help stimulate the economy. He pointed out that sequestration has cost the economy 1.6 million jobs.