The U.S. Supreme Court appeared inclined Monday to rule in favor of Catholic-affiliated charities challenging Wisconsin’s denial of their religious exemption from state unemployment taxes. During oral arguments, justices across the ideological spectrum expressed concerns that Wisconsin’s exemption criteria improperly discriminate between religious groups.
The case involves four nonprofit organizations serving developmentally disabled individuals under the Catholic Charities Bureau of the Diocese of Superior. While Wisconsin grants exemptions to churches and explicitly religious nonprofits, state courts ruled these service-oriented Catholic groups didn’t qualify because their primary purpose wasn’t sufficiently religious.
Multiple justices questioned this distinction. Justice Elena Kagan noted the fundamental principle against favoring some religions over others, while Justice Neil Gorsuch challenged whether government should evaluate doctrinal differences between faiths. The groups argue Wisconsin’s test – which considers factors like proselytization – violates the First Amendment by judging the validity of religious practice.
The outcome could significantly impact how governments interact with faith-based service organizations nationwide. A ruling is expected by late June.
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