Great idea! The government could then proceed to do the same for the rest of the country.
How about this:
Since residents of the District have no Senator or Representative, they should pay no federal income tax.
And anyone who wishes can buy one square inch of land or an apartment in the District and become a resident.
The government has already done that to most of the western States, land that properly should be returned. But my interest is that this is the capital of the United States. It should not look like Mogadishu, with drug gangs, scum like Marion Berry running the place, and a general disdain for the rest of the country in looking like crap.
Turning D.C. into a federal reserve will do nothing to reform the government. Federalism would do a lot for that. But a lot of self respect comes from being clean, tidying your room, and acting like a civilized person. Something our capital needs to do to.