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Catt
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California - SF Bay Area
May 2002 time: 21:23
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The widely-held and often-repeated view, and one that I suscribe to but have nmever tested, is that the AI will simply never accept a gpt deal that pushes its per turn income into the negative, and is unable to factor a lowering of science spending into its calculations of how much gpt makes sense. For example, with a treasury of 1,000 gold, but a per-turn income of only 1 gpt, the AI will never accept a deal for 2 gpt, even though (1) the treasury is more than adequate to cover deficit spending for 20 turns, or (2) the science slider could be reduced to generate a greater per-turn surplus.
I believe this is the case largely through in-game observation (no testing) -- it seems particularly evident when you negotiate a "sweetheart deal" with an AI civ -- i.e., you offer a vlaued tech for a whole mess of assets, all of which is acceptable, but when you change to the same tech for gpt, you can go from 26 gpt as "acceptable" to 27 gpt as "never accept this deal" even though the equivalent of 27 gpt in other assets is wholly acceptable.
One important note on gpt deals -- it also seems that if an AI enters into a gpt deal which later becomes unaffordable, it will choose to declare war in order to get out of the deal. When trading with a foe against whom you do not want to fight, it might be a good idea to not squeeze every last gpt out of that foe -- something as simple as pollution, or a culture flip, may deprive it of the necessary income to meet its current obligations -- boom! war. For this reason, I usually back off on the gpt limits considerably in the later stages of the game when I don't want a war with a trading partner.
Catt 
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Random Passerby
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What size were those cities? A population 12 island city ought to be able to pull out 25 gpt even is despotism at 100% taxes... plus, there's always the possibility that they might be recieving money too.
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JohnM2433
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Milwaukee, Wisconsin
Jul 2002 time: 21:23
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Yup, an AI will generally only offer as many gold per turn as it is currently taking in. Not only that, it often will not accept more gold per turn than you are currently taking in. You can usually fix the latter problem by reducing your science spending to zero before negotiating. If you want to offer even more than that allows you, it will have to be up front.
So the AI knows your per turn income. But then, you can usually figure out theirs: Offer as much as you possibly can to them, and when raising the gpt you request in return by just 1 changes an acceptable deal into one they would never accept, the requested amount just exceeded their income.
Not understanding the possibility of deficit spending or reducing science spending really restricts the AI's ability to trade, presumably with other AIs as well as with the human. If this were to be fixed in the next patch, it could have a big impact on the game...
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