No, it's still awful.
You can make it slightly more bearable by getting all the "minimum autonomy in territories" buffs, but that'll only get you down to 50-60% in the lategame.
Alternatively, you can minimise the impact by giving almost all of the provinces in the TC to a vassal, and keep all of the CoT for yourself. This gets you the extra merchant without too much impact on gov reform. The special manufactory that improves gov cap for the whole state also reduces min local autonomy in the province, so you can stack that in a few key locations.