IIRC, if an AI faction with ships on vital sea lanes suddenly declares war on you, you could have loyalty on some provinces drop by as much as 50-60%, maybe even more. I usually find it very dangerous on the midgame especially since this could cut off some of my newer conquests away from the king.
What I usually do is put the money making lands that I initially have or have conquered early on on very high and leave the rest on normal. Troublesome provinces get set to low or very low. Once I have trade set-up, money ceases to be a problem for me so I don't bother with setting provinces on very high anymore. It's just a potential headache if mass rebellions start pouring in. I usually tinker with taxes only on the early game. I just leave stuff on normal in the midgame to late game.
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