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> While you’re correct the state misses out on income taxes, they get taxes on further spending, eg, when those digital nomad supplied dollars are used to pay wages at the cafe.

This only works to some extent, because, again, you can't subsidize budget with VAT only. And a person who is a bona fide employed immigrant still pays more tax in place of "just" a nomad.

Sorry, but your logic is flawed here.

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They don’t get VAT only, but also income taxes on wages to support that activity and additional rounds of VAT.

Yes — people who emigrate to work there pay more in taxes, but they generally also consume more: the job they’re working displaces a local, they benefit from social medicine, etc. Digital nomads bring jobs from elsewhere to spend locally, while not benefiting from (eg) local healthcare or schools.

> They don’t get VAT only, but also income taxes on wages to support that activity and additional rounds of VAT

They would get the same wages earned on the workload surplus coming from employed immigrants in place of nomads. They also use the same services plus pay income salary. That's the whole point discussed here. Skilled immigration is better than glorified tourism.

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