ANOTHER RHODE ISLAND politician has admitted to selling his office to a business interest. As Operation Dollar Bill — the federal probe of State House corruption — continues its crawl at a snail’s pace, momentum builds to change the state motto from “Hope” to “Let’s Make A Deal.”

But if some business interests have benefited from these corrupt special deals, the business climate in Rhode Island has not. Indeed, the economic report card could hardly be more bleak.

Last week, the nonprofit research group The Tax Foundation released its annual rankings for business tax climate.

Where did Rhode Island finish? If you guessed dead last, you’ve probably been reading the newspaper during the last several years.

The report makes clear that the Ocean State could hardly do more to scare off economic growth — you know, the jobs people need if they are to survive and pay sky-high taxes to support all those who depend on government. Rhode Island beat out New Jersey, New York and California for the highly dubious honor.

The Tax Foundation based the rankings on five taxes: corporate, individual income, sales, unemployment and property, offering an overall picture of the tax climate. By that measure, taxpayers here — whose sheeplike docility suggests the psychological condition known as “learned helplessness” — have it worse than anyone.

Even those politicians who are loyal fans of taxing and spending — and that seems to include most in the Ocean State — must be getting a little bit worried about the Tax Foundation report, an annual advertisement to the nation’s businesses to avoid our state like the plague. That’s because it gets harder and harder to tax and spend when jobs are not being created.

Taxes are not everything in determining whether a state will attract new business. Location (excellent!), quality of life (superb!) and public education (uh-oh!) also weigh heavily. But taxes are an important factor.

The numbers bear that out: Rhode Island ranked 50th — dead last — in job creation from 2003 to 2006 and 42nd in production growth, says Tax Foundation economist Curtis Dubay, citing data from the U.S. Bureau of Labor Statistics and the Bureau of Economic Analysis.

It ranked 49th in population growth, as the middle class (notably including retirees) fled for less punishing states. While the nation’s population has grown almost 3 percent, Rhode Island’s fell over half a percent

Its income growth was 48th. While America’s income grew almost 19 percent between 2003 and 2006, Rhode Island’s grew at just under 14 percent.

Its state and local spending per capita ranked 9th highest in the country.

Those are terrible, even scary, numbers.

The politicians and their mouthpieces around here roll out the moth-eaten claim that Rhode Island is finally turning a corner. (“Rhode Island must continue to improve its tax structure,” said Saul Kaplan, executive director of the Rhode Island Economic Development Corporation, which — whatever else might be occupying its time — certainly isn’t developing a robust economy.)

But less subjective sources tell a different story.

Rhode Island’s ranking has fallen since 2004. It’s not easy to finish worse than 49th in the country in business tax climate, but Little Rhody managed to do it.

The state’s political leaders are unusually slow learners, but they are about to be mugged by reality. Their economic model of hiking taxes to the max, blocking serious accountability and parental choice in public education, driving out wealthy retirees, cutting deals for favored businesses at the expense of everyone else, and allowing NIMBYs to veto such crucial development as a full-scale port at Quonset Point — in short, of making special interests dominant over the general interest — is not working.

The state’s economy is suffering, despite Rhode Island’s great advantages of location, beauty and history. The politicians’ spending has far outstripped the taxpayers’ ability to cover it, creating massive deficits for years to come. And hiking taxes would only further damage the economy, driving away jobs and the tax revenue they produce.

A different model is desperately needed — less crushing, more competitive taxes; and a government focused on the general interest, including the basics of good roads and bridges, good public schools, and help for the neediest.

It can be done, even in the Northeast. New Hampshire ranked 7th in business tax climate. Even such notoriously high-tax states as Massachusetts and Connecticut were far more reasonable, ranking 34th and 38th, respectively, while providing first-rate public education.

But Rhode Island politicians have to start doing business differently — and fast — before the roof caves in completely. Let’s Make A Deal was a popular TV game show, but it’s not a very good model for economic development.

Edward Achorn is The Journal’s deputy editorial-pages editor ( eachorn@projo.com).