The total tax burden on entity income is greater for a partner in a partnership (up to 37% for an individual partner) than on a shareholder in a corporation (21% for an individual shareholder), so partnerships are only used in special situations.

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This statement is false. The tax burden on entity income is not necessarily greater for a partner in a partnership compared to a shareholder in a corporation. The tax burden depends on various factors, such as the type of income, deductions, and credits available to the partnership or corporation. Additionally, partnerships may be more advantageous than corporations in certain situations, such as when the entity wants to pass through losses to its owners, or when there are foreign partners.

The Total Tax Burden on Entity Income Is Greater for a Partner