[ps4fanboy]

Yes, you have to spend the money though so youll still be down 55K, it doesnt count to things like capital purchases.

[gordjw]

Depends who owns the company you spend the $100k with.

They'd need to pay 30% tax on their income, leaving a net outlay by the government of $15k (15%) overall.

[robzyb]

Their income would be less than the $100k. They would have incurred expenses when they provided the services.

I paid $100k, the provider took the $100k and spent $60k. This means they declare $40k income.

The company pays $12k tax.

The Goverment gives $55k to my hypothetical company.