Olympic Medals Taxable?

US Olympic athletes who win medals receive a cash payment from the US Olympic Committee which under current law is taxable to the recipient. Current tax law says that all income is taxable regardless of its source unless specifically exempted by statute. Senator Charles Schumer is pushing legislation to exempt athletes from taxation for winning a medal. He says someone whose hard work has allowed them to rise to the top of their sport and win a medal should not be punished for their success by taxing their medal earnings. Isn’t our entire tax system based on taxing people for their success? The more you earn, the higher the tax rate you pay.