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In this video, the concept of excise taxes is discussed. Excise taxes are specific taxes imposed on certain goods and services, such as fuel, alcohol, cigarettes, air travel, and phone service. Unlike a general sales tax, excise taxes target specific items. These taxes can be quite high, for example, a $1.00 federal excise tax on a pack of cigarettes. Excise taxes can be imposed at both the federal and state level.