The U.S. Supreme Court recently showed support for a Catholic group in Wisconsin seeking a religious exemption from the state’s unemployment insurance tax.
The case involves the Catholic Charities Bureau, which operates as the social ministry arm of a Catholic diocese in Superior, Wisconsin. The bureau and its subsidiaries appealed a lower court’s decision denying them a tax exemption.
At issue is whether Wisconsin’s denial of the exemption violates the First Amendment’s guarantee of free exercise of religion. The state’s unemployment insurance program collects taxes from employers to provide income to eligible jobless workers.
However, Wisconsin law requires organizations to be “operated primarily for religious purposes” to qualify for a religious exemption.
Lawyer Eric Rassbach argued that the justices should adopt a generous approach to exemptions. In contrast, Wisconsin Assistant Attorney General Colin Roth warned that expanding the exemption could leave over one million employees nationwide without unemployment coverage, including those working for religiously affiliated hospitals.
The Wisconsin Supreme Court previously rejected the exemption bid, stating that Catholic Charities’ activities are primarily charitable and secular, despite their religious motivation.
The organization provides services to the poor, disabled, elderly, and children with special needs, but does not require employees or recipients to adhere to Catholic beliefs.
Some justices questioned whether Wisconsin’s policy unfairly favors certain religious groups over others. Justice Neil Gorsuch noted that the First Amendment prohibits the state from picking and choosing between religions. A ruling in the case is expected by the end of June.
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