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In this video, the concept of excise taxes is discussed. These taxes are imposed on specific goods and services, not a broad tax like sales tax. Examples of items typically subject to excise tax include fuel, alcohol, cigarettes, air travel, and phone service. Although not as broad as sales tax, excise taxes can be high - for example, there may be a $1.00 federal excise tax on a pack of cigarettes. Excise taxes can be imposed at the federal level.