What becomes of that other $30k? I assume there's a reason why you wouldn't just pay yourself $30k and keep the tax-free $70k.
As you can imagine, there is a ton of bookkeeping and bureaucratic pain associated with having an S-corp (like pretending to have annual meetings, and having to write minutes for them).
I don't think this is true. If you buy an ice sculpture for the office lobby, it's totally tax deductible (it's a business expense), but you can use money for whatever you want if you take it out of the bank as a "distribution" instead of a "paycheck." In that situation, you still pay income tax on the money, but not the other taxes.
So I think the trick here is, you pay yourself $70k in salary, but issue yourself a $30k profit sharing distribution.