IRS Considers Taxing Perks At Iconic Silicon Valley Firms

Photo: applieddatalabs.com

The Mercury News reported today that the Internal Revenue Service is rumored to be considering a tax on free meals employees offered at major Silicon Valley firms. The story offers a revealing glimpse into the sense of entitlement employees at firms such as Google and Facebook embrace.

One former Google employee was quoted as maintaining the free food was not "compensation," but "a phenomenal convenience..." Apparently, that line of reasoning was sufficient to dodge the taxman. Meanwhile, the Mercury News article cited a story from the late, lamented Gourmet magazine raving about the Google dining room's sensational cuisine, including "'porcini-encrusted grass-fed beef.'" That's not exactly "convenience" food. Some of the Valley's employees and chefs claimed the high-quality dining was essential to a firm's culture, growth prospects, and hiring attractiveness.

The meals were for everyday employees, and not restricted to executive dining rooms. Somehow, the brains that turn out the secret sauce known as "proprietary algorithms" could not possibly function effectively without tax-free meals. The tech firms and their satellite dependencies would have one believe that instituting a government levy on corporate cafeterias would somehow diminish the appeal of working in the global epicenter of technological innovation. Sorry, I'm not buying it.

I admit I typically don't pay tax for my work lunches. Then again, I usually bring my own lunch from home. I manage.