Keith Hennessey answers the first question.
Greg Mankiw answers the second. I fully support four of Mankiw's five suggestions. The remaining one, a VAT, I'm more doubtful about. But if it were part of a comprehensive deal along the lines he discusses, maybe--maybe--I could support it, too. (Daniel Mitchell argues against a VAT: "A Value-Added Tax Is Not the Answer . . . Unless the Question Is How To Finance Bigger Government".)