Europa Universalis V confirmed

[Solmyr]

One problem is that if you have low control, you get no taxes but also your estates' money evaporates into thin air. This should not be the case - your estates should be able to enjoy their income in areas of low crown control. That way a decentralized state would have estates building things and making money available for loans.

[Richard Hakluyt]

Yes, I can see a decentralised state getting prosperous as a weak crown is unable to sieze much in the way of tax money and waste it on wars. IIRC Castile was very heavily taxed which is a factor in its precipitous decline in the 17th century.

[Tamas]

But also, as I understand the game doesn't simulate ALL money/wealth in circulation like Vic3 does. Not sure just giving lost tax money to estates would work.