The famous 'three martini lunch' hoo hah first started with Jimmy Carter's 1976 presidential campaign. It caused a law change where only 50% of meals can be deducted - it doesn't matter if there is alcohol or not. Even if you are travelling it's still only 50%. And if you attempt to deduct the full amount anyway, the IRS can go after the employee and make them pay the tax on it. This has been true for a long time.
So I find it hard to believe that Silicon Valley isn't paying any taxes at all. The 50% rule has been in effect for a long, long time. And they aren't stupid enough to ignore something like that.
The IBD article is just plain misinformed. I mean, it shouldn't be a shock to anyone that the IRS wants its cut on employee meal expenses. That is basic tax law, and it's been that way for years and years. Granted, it is a 50% deduction, not 0% or 100%, but that fact should have been cited the article.
The whole article is poorly researched. The 34 page "2014-2015 Priority Guidance Plan" has exactly one line relating to this issue:
Guidance under §§119 and 132 regarding employer-provided meals.
That's it. One line. Translation by the popular press: "The sky is falling!"