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In this video, the concept of excise taxes is discussed. An excise tax is imposed on specific goods and services, not a broad tax like a sales tax. Items such as fuel, alcohol, cigarettes, air travel, and phone service are typically subject to excise taxes. These taxes can be quite high, such as a federal excise tax of $1.00 per pack of cigarettes. Excise taxes can be imposed at both federal and state levels.
