The DC bill will be overturned in Court, making it's effects void.
No, it will not be overturned in court. And if so then the people that live in DC shouldn't have to pay taxes.
Why won't it be overturned in court? The Constitution is pretty clear that only States get representatives in the House, and that DC is not a state.
That's if it gets to court. There is a potential problem in finding someone who has standing to sue. Assuming Muon's estimate for how the 2010 census will go is correct, then the party with the strongest standing would in theory be Washington State, as by his estimate they would get the 437th Representative if DC doesn't get one. OTOH, if the size of the HoR was left at 435, Texas would be the State most aggrieved by the change. However, since the increase in size is linked to the addition of a representative for DC, it might be enough for the Court to find a lack of standing immediately.
However, all is not lost, there are two other ways for there to be a clear case of standing, but it'll likely take a while for the situation to occur.
1) If an act passes the House only because of the Representative for DC and/or a Representative from the State that gets the 436th seat being among the ayes, then someone who would be adversely affected by that act could sue claiming that the law was never passed Constitutionally.
2) Since S. 160 as written when I last looked at it also gives DC Article V powers, an amendment that stalls at 38 States approving it with DC not approving would present a potential case. (With 51 States, 39 are needed to pass an amendment instead of the current 38)
Both are quite unlikely but they would give a way for the bill to be challenged.
Since so few bills