Supreme Court sides with Catholic Charities in religious-rights case over unemployment taxes

The U.S. Supreme Court decided Thursday that a Catholic charity doesn’t have to pay Wisconsin unemployment taxes, one of a set of religious-rights cases the justices are considering this term.

The unanimous ruling comes in a case filed by the Catholic Charities Bureau, which says the state violated the First Amendment’s religious freedom guarantee when it required the organization to pay the tax while exempting other faith groups.

Wisconsin argued the organization has paid the tax for more than 50 years and doesn’t qualify for an exemption because its day-to-day work doesn’t involve religious teachings. Much of the groups’ funding is from public money, and neither employees nor people receiving services have to belong to any faith, according to court papers.

Catholic Charities, though, says it qualifies because its disability services are motivated by religious beliefs and the state shouldn’t be making determinations about what work qualifies as religious. It appealed to the Supreme Court after Wisconsin’s highest court ruled against it. President Donald Trump’s administration weighed in on behalf of Catholic Charites.

Wisconsin has said that a decision in favor of the charity could open the door to big employers like religiously affiliated hospitals pulling out of the state unemployment system as well.

The conservative-majority court has issued a string of decisions siding with churches and religious plaintiffs in recent years. This term, though, a plan to establish a publicly funded Catholic charter school lost after when the justices deadlocked after Amy Coney Barrett recused herself.

The nine-member court is also considering a case over religious objections to books read in public schools. In those arguments, the majority appeared sympathetic to the religious rights of parents in Maryland who want to remove their children from elementary school classes using storybooks with LGBTQ characters.