Hungry for tax revenue amid mounting deficits the federal government on Wednesday hiked its tax on cigarettes from 39 cents to $1.01 per pack - an increase of 155 percent - making it the single largest federal tobacco tax hike in history.

Cigars, chewing and pipe tobacco will also see tax hikes.

Government officials plan to use that extra 62 cents in taxes per pack of cigarettes to help fund health care for poor children. The tax will bring in a projected $32.8 billion over the next 4.5 years.

Plans call for using that money to expand the federally-funded State Children's Health Insurance Program, which is money given to states to provide health care coverage to children from families that don't earn enough to afford private health insurance but earn too much to qualify for Medicaid.

But some critics say it is exactly the poor who will be most adversely affected by the tax hike. Supporters say they hope it is enough incentive to encourage more people to quit the habit that often causes some health problems.