When should you kiss the king's ring in Colonization? What happens if you refuse?
Many factors play allong when choosing to kiss the royal pinky ring. The king comes up with a offer for tax, i have seen 1% increases to more then 10% increase. A 1, 2 or even 3 % increase is not something you should worry about at all and kiss the ring. When the tax increase is higher you might want to consider not kissing in certain conditions.
If you chose to not kiss the ring you cannot trade a specific type of goods anymore in Europe. So you need to be able to trade that with the natives or fellow Europeans. Other way around if you are in need of certain goods and your only good hope for enough of these at a good price is your port in Europe then you might need to consider kissing the ring anyway even for a high tax increase.
I usually get myself 2 or 3 scouts early on and save for a galleon to get all the gold home as soon as possible since the increase in tax will influence the profit from the treasures you find. Once you got a lot of treasures and money you also scouted out most of the map and know plenty of places where you can trade with the natives instead of Europe. So if any tax increase of 5%+ comes most of the time you don't have to kiss the ring. You will always have plenty of food and raw material, so when these are threatened to be boycotted that is ok.