Could be that "High prestige = Higher tax income" is simply because more people are drawn to your lands because you are so awesome. More inhabitants means more tax payers means more revenue.
Also, I don't think people mind high taxes that much provided the government doesn't take so much that people fall below the poverty line, isn't corrupt or doesn't just keep all that tax money for itself. If a high tax rate goes together with serious investments in infrastructure, affordable education and healthcare, a sold social safety net and so on, people won't complain that much (although they will complain because people are people) simply because they obviously get something in return for the taxes they pay.
Actually, one of our kings here in the 16th century had the highest taxes (in our history, or relative to every contemporary nation, that I don't know), but nobody cared because people had the money to pay it.