Well, indeed, that was a huge problem with Sim City. They believed cities should have low tax rates, so of course low tax rates are the correct strategy. They also discovered exactly how much space building parking takes up so… they made cars take up no space rather than have a game in which public transport and cycling was the go-to approach.
The weird bit about SimCity wasn't so much the low tax rates, as the system encouraging you to set higher tax rates on the poor than the rich as the main way to ensure a city full of shiny villas rather than crumbly shacks. That's... actually not how wealth is created.
But in the end, the problems with most such models is that the outcome ends up being determined by the assumptions built into the model.