Jota Silva said the day would serve to "reflect on what happened on July 8," the day in 2014 when eventual world champions Germany beat Brazil 7-1 in the semi-finals.
It was Brazil's heaviest ever World Cup defeat and an unprecedented humiliation for the host nation.
"It wouldn't be a holiday, just a day to remember," Silva told Reuters. "For two to three months afterwards people were joking about it, people were always saying, 'another goal to Germany!'
"But Brazil's downward spiral in football has been going on for some time. And we need to ask, where do we go from here? A day would give us a chance to reflect."
Silva said he had spoken to colleagues and there was support for the bill.
However, voters in the city of 1.2 million people near Sao Paulo were not so enthusiastic.
"Stop taking the mickey out of your constituents," a man named Marcos Nascimento posted on Silva's Facebook page. "You were elected to work for the people and I believe there are more important things that need to be done."
Some wags suggested the 'Goal to Germany' day should actually be a week.
(Reporting by Andrew Downie; Editing by Ken Ferris)
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