Supreme Court Unanimously Blocks Religious Tax Exemption for Wisconsin Charity

The U.S. Supreme Court unanimously ruled in Catholic Charities Bureau v. Wisconsin Labor & Industry Review Commission that Wisconsin violated the First Amendment by denying a religious exemption from state unemployment taxes to Catholic Charities Bureau. The Court found that the state improperly discriminated against the charity by narrowly interpreting the exemption to require proselytizing, despite the charity being supervised by a diocese and operating primarily for religious purposes. This ruling reflects a broader trend in the Roberts Court, which has ruled in favor of religious organizations over 83 percent of the time, often protecting Christian traditions but prompting debate over perceived rightward shifts. The decision contrasts with other recent religious cases where the Court has been divided, such as the 4-4 deadlock on a religious charter school issue. Advocates view these rulings as part of a larger effort by the Court to temper polarization around religion-related cases. Justice Sonia Sotomayor, author of the majority opinion, emphasized the clarity of this case compared to other more complex free exercise questions.