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A case study in high corporate rates and special favors.

Illinois gained nationwide notoriety in January when Governor Pat Quinn signed into law a 67% hike in the personal income tax rate while lifting the corporate tax rate to 9.5%, the fourth highest in the nation. How is that working out?

The good news is that corporate tax receipts in Springfield are up by about $300 million amid the economic recovery—though the state comptroller's office announced in April that the state still faces $8 billion in unpaid bills. The bad news is that, according to the state's Department of Commerce, Illinois has already shelled out some $230 million in corporate subsidies to keep more than two dozen companies from fleeing the state. And more are on the way.

According to state records, Illinois agreed last year to give $272.7 million in tax breaks and other incentives to 67 companies that had invitations from other states to move jobs elsewhere.

That’s more than quadruple what Illinois promised the 44 companies that received incentives packages in 2006, and more than double the financial commitment in 2009, according to documents obtained by the Associated Press through a Freedom of Information Act request.

With promises of $230 million already made this year — including an unprecedented $100 million package for Motorola Mobility and another being negotiated with Sears Holding Corp. — 2011’s tally is likely to surpass that of 2010. Gov. Pat Quinn and state economic development officials agreed to the incentive packages as Illinois wrestled with a multibillion-dollar budget deficit.

State officials say they had little choice but to ante up when companies had offers from elsewhere. Department of Commerce and Economic Opportunity spokeswoman Marcelyn Love said state officials knew they would face criticism if they didn’t try to retain the jobs and investment. “Would you like to see these jobs go out of state?” she asked.

how's all that revenue working out for you? so the taxpayers get hit with a 67% increase, and then they're shafted, because all that money is getting put directly into corporate tax breaks, so the businesses won't flee the higher taxes. beautiful.