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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, not a broad general tax like a sales tax. Goods and services typically subject to excise taxes include fuel, alcohol, cigarettes, air travel, and phone service. Excise taxes can be quite high on these items, such as a $1.00 federal excise tax per pack of cigarettes. The tax can be imposed at the federal level or state level.
