Agree with Shua that Option 2 is flawed, but I'd still take it on the whole. The debt is the biggest national security threat, and no amount of military spending will protect us from that. We can reduce the spending on that or at least re-appropriate it to take care of our citizens in varying ways (think childcare, medicare), thus allowing more money to be put into the economy through their saved income. Of course that would probably be offset by those numbers given in regards to the income tax.
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