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Supreme Court Sides With Catholic Charities in Tax Exemption Case

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Supreme Court Sides With Catholic Charities in Tax Exemption Case

by Sandra Rhodes
June 6, 2025 at 9:38 am
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Supreme Court Sides With Catholic Charities in Tax Exemption Case

Steps to the United States Supreme Court, Washington DC, America

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The Supreme Court has ruled in favor of a Catholic Charities chapter in Wisconsin that was originally denied a tax exemption.

The ruling came down Thursday by a unanimous vote, according to a report in USA Today.

The justices determined that Wisconsin did not comply with “the First Amendment’s protection for religion and discriminated against the religious organization in Wisconsin.”

“There may be hard calls to make in policing that rule, but this is not one,” Justice Sonia Sotomayor wrote.

🚨JUST ANNOUNCED: Good Thursday. The Supreme Court SCOTUS just ruled unanimously that the Wisconsin Supreme Court violated the First Amendment when it tried to force Catholic Charities, and no other religious org in the state, to pay unemployment taxes. 9-0! #thursdayvibes pic.twitter.com/k4oSfU5FcE

— AJ Huber (@Huberton) June 5, 2025

The case hinged on Wisconsin forcing Catholic Charities to participate in the state’s unemployment benefits system. The state’s rationale was the organization worked in the secular realm even though it based in religion.

The state said the chapter’s job training, placement and coaching did not contain religious instruction. 

The employees and the clients do not have to be Catholic and the organization works separately from the Catholic diocese.

“The purpose of the exemption is to keep the government from violating the First Amendment by getting too involved in a church’s employment decisions,” per the outlet. “Because an employee is not eligible for unemployment benefits if the person was fired for misconduct, Wisconsin doesn’t want to have to decide the legitimacy of a firing that was based on matters of religious faith and doctrine.”

Catholic Charities said it was being discriminated against because the charitable arm is incorporated separately from the diocese and because it offers its services without bringing religion into the mix.

Tags: Supreme CourtTax ExemptionU.S. News
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Sandra Rhodes

Sandra Rhodes

IJR, Contributor Writer She was a Story Editor for Indpendent Journal Review since November 2022 and has written for IJR since February 2024. She has been in the newspaper business in various capacities since 1998.

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