Yeah, I just found out last night that there are still a few bugs that need to be worked out. The biggest one is to make sure the calculations change due to wonder purchases. If my population changes from a wonder, or my gross income changes from a wonder, that should be reflected in the other wonder calculations. I am working on that now. The other thing I am doing is trying to compensate for any existing wonders. This way it doesn't exaggerate your income bonus or calculate from inaccurate information.
As for lowering the DEFCON level: it was simply an arbitrary means of finding out the loss of income based upon one happiness point. I've found out that this is essentially moot, and now finally understand what Aeternos Astramora was talking about. If one has all the improvements that affect happiness, the end result will be $4.15/happiness. So, the prudent thing would be to include a spot for this.
Man, this thing is becoming a lot more complicated than I imagined.