The first card issuer to make this decision without being forced to by the IRS will see it's card business go down the sewer if everyone doesn't follow suit.
Exactly, which is why there are voices against it. If you alter incentives then you may see a dramatic change in consumer interest. So some voices might suggest "Let's test this in the banking sector first where the customer base is stickier and the regulatory oversight is greater."
Not sure why Citi would want to do this on their own motion.
I guess you have never met a C-level corporate attorney.