The U.S. Supreme Court is set to hear a case that could determine whether states can require religiously affiliated organizations, like Catholic Charities, to pay unemployment taxes.
Catholic Charities argues that Wisconsin violated the First Amendment by denying it a religious exemption. A ruling against the group could impact over a million U.S. workers employed by religiously affiliated institutions.
Forty-seven states and the federal government currently exempt such groups from these taxes. Catholic Charities claims its work—serving the elderly, poor, and disabled—is religious in nature.
Critics argue that allowing broad exemptions could open the door to abuse. Given the Court’s recent pro-religion rulings and its conservative majority, Catholic Charities may have an advantage.
A decision is expected by June and could have wide-reaching effects on religious organizations nationwide.
