Promising new jobs, economic growth and lower taxes, Sen. Sam Brownback explored ideas Wednesday for testing a flat federal income tax in the District of Columbia.

Congressional control over much of the capital city makes it prime ground for legislative experiments.

In this case, Brownback, a Kansas Republican, wants to give residents the option to voluntarily pay federal taxes through a system that scraps tax breaks, such as mortgage interest and charitable donation deductions, in return for a lower tax rate.

Brownback leads the subcommittee that controls the District of Columbia budget, but he needs backing from the Senate Finance Committee to turn the idea into law.

He predicted that the city’s residents would welcome the opportunity.

“I believe that a voluntary flat federal income tax for District of Columbia residents would give us real-world, valuable information about whether a flat tax is actually better than the current, cumbersome system,” he said.

Paul Strauss, the District of Columbia’s shadow senator, said it would be “unconscionable” to impose a different tax system on the city.
He sat up front at a hearing at which Brownback heard testimony from four conservative economists who support the idea.

“It is morally wrong for Congress to use D.C. as an experiment,” Strauss said. “I also find it alarming that this Congress, which has all but bankrupted the federal government, now wants to change the system in D.C., which has a budget surplus.”

Among those speaking in favor of the flat tax was Republican Dick Armey, a former House majority leader from Texas who is now chairman of FreedomWorks, an organization that promotes lower taxes and smaller government.

People who get certain tax credits may be the only ones to opt out of a flat tax, Armey said. The earned income and child tax credits can mean significant refunds for some lower-income families, he said.