There seems to be an inconsistency in the text’s discussion of Price Indices (P. 68, 6th ed) and in its discussion of Taxes (P. 71, 6th ed). In deciding whether or not a consumer is better or worse of when prices change, Landsburg either uses the original optimum basket (Laspeyres) or the new optimum basket (Paasche). But in deciding which tax is better, he uses two optimum baskets, the optimum points on the new and old budget lines. The optimum point that is on the higher indifference curve is then preferred. It seems inconsistent to use only one basket (optimum point) in examining the effect of a price change and to use two baskets in comparing two taxes? And if we were restricted to using only one basket in comparing taxes, would not the choice as to the least harmful tax be just as ambiguous as the decision as to whether a price change is beneficial or not?

[NEAS: For price changes, the text examines the cost of goods. so it choose the same basket of goods before and after the price change. For taxes, the text examines the utility of the optimal basket of goods, which may differ before vs after the a change.]