I had big morale problems in my first games too. In my latest game (level: bright) I didn't colonize any planets with planetquality less than 15. It have no morale problems in this game at all. I've had the tax-slider at about 50% the whole game (played for 7 hours maybe - I have terror stars and all that sh!t) and my aproval rating is about 60-70%. And when available do build teleporters in all cities. They are very cheap in maintance and improves morale alot :-)
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