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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, not a general tax like a sales tax. Common items subject to excise taxes include fuel, alcohol, cigarettes, air travel, and phone service. Despite not being as broad as a sales tax, excise taxes can be quite high, such as a $1.00 federal excise tax on a pack of cigarettes. Excise taxes can be imposed at the federal level.