Sen. Rand Paul (R-Ky.) announced Thursday that he will propose legislation that would cut taxes for Detroit and other areas of the country that are in dire financial straits, pitching the idea as an alternative to bureaucratic government stimulus programs.

Paul is traveling to Detroit on Friday to make his case. During a conference call Thursday morning, he said the idea (known as "Economic Freedom Zones") should satisfy both Republicans who like cutting taxes and Democrats who want to provide stimulus to areas such as Detroit — all without another government-funded bailout.

"What we hope to do is create taxes so low that you essentially are able to bail yourselves out, by having more money accumulate in the area over time," Paul said.