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 spe

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.