Money Laundering in Nation Wars

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We all Understand that money Laundering in reality is illegal, its a way of cheating the system.

I'd like to know everyones opinion on this issue.

When one or more state re-sells all of its military repeatedly this feeds money in to the national bank.

By doing this The nation can have a much lower tax than needed, A nation can have a tax rate of 5% and have the Tech and National Army of a nation with a tax rate of 20%.

This allows a few chosen states within that nation to excel, with an unfair advantage.

At the time only a few players participate in such actions.

A New player that might come to this game would have absolutely no chance of competing with a nation that takes these unfair advantages.

In order for them to be competitive, (which is the fun part of most games) they would need to adopt a similar strategy.

If I was a new player and I was forced to adopt a money laundering strategy in order to compete, I would likely leave the game fairly quickly, and find a game that is constructed more fairly.

The question I pose is this:

Is money laundering in nation wars considered acceptable play?