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In this video, the concept of excise taxes is discussed. An excise tax is a specific tax imposed on certain goods and services, such as fuel, alcohol, cigarettes, air travel, and phone service. Unlike a sales tax, which is more general, excise taxes can be quite high on these specific items. For example, there may be a federal excise tax of $1.00 per pack of cigarettes. It is important to note that excise taxes can be imposed at either the federal or state level.
