The Supreme Court has made a decision in a case involving a Catholic charity in Wisconsin, ruling that the organization does not have to pay unemployment taxes. This ruling comes as part of a larger consideration of religious rights cases currently before the Court.
The case, Catholic Charities Bureau Inc v Wisconsin Labor & Industry Review Commission, centered around whether the charity should be exempt from paying unemployment taxes as a religious organization. The Wisconsin Supreme Court had previously ruled against the charity, stating that their activities in serving the state’s poor did not qualify as religious enough to warrant the exemption.
However, the US Supreme Court overturned this decision, siding with Catholic Charities and affirming their argument that as a religious organization, they should not be required to pay unemployment taxes. This decision sets a precedent for similar cases involving religious groups and their tax obligations.
The ruling has sparked discussions about the intersection of religious freedom and tax law, with some praising the Court’s decision as a victory for religious liberty, while others express concerns about the potential implications for government revenue and the broader tax system.
Overall, the Supreme Court’s decision in favor of Catholic Charities in this tax case highlights the complex and often contentious issues surrounding religious rights and financial obligations in the United States.
References:
1. ABC News: US. “Supreme Court sides with Catholic Charities in case over unemployment taxes.” https://abcnews.go.com/US/wireStory/supreme-court-sides-catholic-charities-religious-rights-case-122535542
2. NYT > Top Stories. “Supreme Court Backs Catholic Charity Denied Exemption in Tax Case.” https://www.nytimes.com/2025/06/05/us/politics/supreme-court-catholic-charity-tax-exemption.html
3. US news | The Guardian. “US supreme court backs Catholic charity group in unemployment taxes case.” https://www.theguardian.com/us-news/2025/jun/05/supreme-court-decision-ruling-catholic-charity
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