
Originally Posted by
crzyrndm
While you might earn more/turn with low taxes, with high taxes you have more money to build income/growth/health improving buildings like town halls/farms/markets, and allow larger armies for faster expansion. So unless you are trying to reach the next level of city, the highest taxes are actually better because you only lose 1.5% growth/turn, but gain alot in taxes by running very high taxes faction wide(except were you are racing to the next level of city). The advantage's of using low constantly are only felt very late in the game and are normally far outweighed by the early->middle advantages of running constant high taxes. Therefore the PO penalty can cause a massive decrease in income due to need to decrease taxes to keep towns from revolting, so it is actually a factor.