The U.S. Supreme Court appears ready to rule in favor of a Catholic Charities chapter from Wisconsin, challenging the state’s refusal to grant it the same unemployment tax exemption given to churches and religious schools. Justices from both sides of the ideological spectrum raised concerns over potential religious discrimination, with Justice Elena Kagan emphasizing that equal treatment of religions is fundamental.
Catholic Charities, a social ministry of the Roman Catholic Diocese of Superior, began its legal fight in 2016. The organization argued that it should be exempt from Wisconsin’s unemployment tax because it operates “primarily for religious purposes” as part of its charitable work, aligning with Catholic principles.
However, a state labor commission rejected the exemption, ruling that Catholic Charities, despite its religious motivations, operates in a secular capacity. The Wisconsin Supreme Court upheld this decision, noting that the charity serves people of all faiths and does not actively promote Catholicism to program participants.
In oral arguments on Monday, Catholic Charities’ lawyer, Eric Rassbach, criticized the Wisconsin Supreme Court for favoring “typical” religious activities in its decision. He argued that helping the poor, regardless of religious affiliation, should not disqualify the charity from the exemption.
Justice Ketanji Brown Jackson questioned the Wisconsin court’s focus on whether Catholic Charities serves religious purposes. She pointed out that federal law distinguishes between religious organizations like seminaries, which are exempt, and secular charities affiliated with religious groups, like orphanages, which are not.
Justices also debated whether the case involved church autonomy, with Justice Amy Coney Barrett suggesting the government was not interfering with church activities but offering incentives. Rassbach disagreed, emphasizing that the specific incentives matter in this context.
Assistant Attorney General Colin Roth, representing Wisconsin, explained that the state’s unemployment tax exemption aims to prevent doctrinal disputes when religious organizations dismiss employees. He argued that applying the exemption to Catholic Charities could set a precedent allowing other religiously affiliated groups to bypass the tax.
Several justices raised concerns about where to draw the line between religious and secular activities. Chief Justice John Roberts and Justices Gorsuch and Barrett questioned whether the exemption should depend on whether the organization actively proselytizes, warning that such a rule could lead to government interference in religious practices.
In closing, Rassbach argued that the case highlights the importance of religious pluralism in American society. He called for a broader, more inclusive approach to religious exemptions, a sentiment that seemed to resonate with most of the justices. A decision in the case is expected soon.
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