According to the “benefit principle” of taxation, a business’s tax in a state should be related to the benefits to the business from services provided by the state and local governments. Practically, a firm’s business activity or tax base is usually divided among states based on the state’s share of the firm’s capital, employment, and/or sales. Discuss how well each of those components of the allocation formula might correspond to service benefits. Does a firm with sales (through the internet or mail order, perhaps) but no employees or capital in a state benefit from any state or local government services?