Taxes don't make anyone unhappy, they reduce science instead.
Every city can have a certain number of citizens who stay content, additional citizens will be unhappy but you can reduce unhappiness with military units or city buildings like temples. There's also the option to raise luxuries.
I always start with 0 percent tax and 100 percent science and raise taxes when I need money to maintain buildings.
The best way to increase science is increasing trade (caravans are very effective).
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