The U.S. Olympic Commission awards cash prizes to Olympians who win a medal -- $25,000 for a gold, $15,000 for a silver and $10,000 for a bronze. But the money is considered earned income abroad and subject to IRS taxation. A gold medal winner can potentially be taxed from $2,500-$10,000, depending on other earned income throughout the year.
If the United States is going to reward its athletes that are representing it in the Olympics, they should not tax them for winning as well.
Endorsements and other earnings aside, it is extremely rare for any individual to take part in the Olympics and that should be a special moment that they shouldn't have partially taken away from them thanks to taxation.