Just low 20s meterless and low 30s for a bar isn't "a lot" of damage lol, and from full distance it gets hard to convert from unless you spend a bar.
Eh as much as mindgames are a thing I still think he needs something more worrisome.
11212~spin/F23~spin, Jk~dk, B321 Hat Trap 25% when you punish from a jump in is 27% without counting the fact that a throw gives you 12% more.
With the hat out
112124~ Hat Call back, B321 spin~ JK~dk 21 30s
Kung Lao can do 38% meterless in all variations from a jump in, that is cray, he can do 40 meterless from a tele 3 punish in all variations, those are the reasons i think he doesn't need anymore damage buff, if you buff his damage more aside of his options being extremely viable, he will be stupid broken and the right term will not be "walking tank".
Anything that is beyond -16 on block and ends at blast radius, lao punishes with 44 which gives him a lot of meterless damage
What i think needs changing on the Hat Trick are a few things
1. Above Hat Trap should have place the hat above and in front of Lao with an additional command
2. Hat trap doesn't go away when Lao is hit unless when one of the following conditions is met: Lao takes more than one hit, juggled or knockdown.
3. Ability to Hat Call Back from a teleport
4. Ability to attack air bone after an air hat call back
5. Hat-a-Rang should have been a blockstring, that gap needs to go
6. 112124~ Hat Trap should have been +2 on block
The only way of giving him a damage buff without necessarily buff his other variations would be making 112124~Hat trap~F23~Hat Call Back a 3 frame link combo, although this would become usefull when the opponnent wakeups on the opposite direction to escape the hat because it would give Lao time to spin, i think this buff is the one that is not really needed.