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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 tax like a sales tax. Goods subject to excise taxes include fuel, alcohol, cigarettes, air travel, and phone service. Excise taxes can be quite high, for example, a $1.00 federal excise tax on a pack of cigarettes. Excise taxes can be imposed at the federal or state level.
