‘What Bush has done has been not very big, it’s pretty small,’ Mr Prescott told CNBC financial news television.
‘Tax rates were not cut enough,’ he added.
Lower tax rates provided an incentive to work, Prof Prescott said.

And in an on air report I heard him providing an example about someone making over 200K being less off than someone making 195K.
Perhaps that explains why Monday Night athletes and A-list entertainers are showing less energy, skill, and well … just sub standard performance. Perhaps we will note a request for reduction in wages because of the tax effect. Perhaps we will see people taking a reduction of wages from 205K to 195K to increase the motivation effect of tax changes.
And how did the prize affect Mr. Prescott? The prize includes money, medal and certificate. Also included is the dinner and ceremony. It seems he did it without regard to the tax implications of the award, strange
… [from AP story]

“I am honored and thank all those that have helped me, in particular Finn Kydland,” Prescott said. “The money is nice, but I am not in this game for the money. I am in it because I love doing it figuring things out and interacting with students and colleagues.”

…
Looks like he did it for the untaxed dinner and ceremony. Next time why don’t we save the million and just give him some take out chicken.