In Washington, DC, the U.S. Supreme Court hinted that it is leaning towards ruling in favor of Catholic Charities in a case concerning whether religiously affiliated groups should be granted exemptions from certain state taxes. This potential decision has the potential to extend the scope of groups eligible for such exemptions under the First Amendment.
Following about two hours of oral arguments, it became apparent that even some of the more liberal justices on the court were uneasy about a judgment made by Wisconsin’s highest court, which drew a distinction between groups that impart religious teachings and those, like Catholic Charities, that do not actively promote their faith to recipients.
Justice Elena Kagan, part of the court’s liberal contingent, remarked, “There are numerous complex questions in this realm. However, I firmly believe that it is essential that we treat all religions equally and not base it on the specific doctrines they preach.”
Critics argue that Catholic Charities’ stance could put at risk unemployment benefits for hundreds of thousands of individuals employed by religiously affiliated institutions.
In the first religion-focused appeal the conservative-leaning 6-3 Supreme Court has heard in nearly two years, the Catholic Charities Bureau and four related organizations argue that Wisconsin violated the religious protections outlined in the First Amendment by denying exemptions from the state’s unemployment taxes. Churches already benefit from this exemption, prompting the justices to contemplate whether religiously affiliated entities that do not primarily teach religion should also be eligible.
Catholic Charities cautioned that this type of analysis would require the state to delve into philosophical questions regarding the definition of religion – typically matters federal courts steer clear of. This argument seemed to resonate with many members of the court.
Justice Neil Gorsuch, part of the conservative faction of the court, posed, “Isn’t it a core tenet of our First Amendment that the state should not be selective in its treatment of religions? Does it not create significant entanglement when the state must inspect a soup kitchen to gauge the extent of prayer activities?”
In recent years, the conservative justices have blurred the once clear boundary between church and state, arguing that some government initiatives aimed at upholding the First Amendment’s establishment clause have been overly broad and discriminatory towards religion.
If the expected ruling, due by June’s end, is broad enough to encompass other religiously affiliated entities such as hospitals, it could have far-reaching consequences. It might also restrict the government’s ability to scrutinize whether groups are genuinely religious or simply claiming to be to evade taxes.
LuĂs CalderĂłn GĂłmez, a tax law expert at Yeshiva University’s Benjamin N. Cardozo School of Law, commented, “Accepting the religious nature of organizations at face value makes it challenging for the government to challenge the legitimacy of their religious activities.”
When focusing solely on a sincerely held belief rather than examining the actual activities a business is involved in, it can open the doors for abuse, according to a statement made by a representative. The Catholic Charities Bureau, which identifies itself as the social ministry arm of the Diocese of Superior in Wisconsin, is known for carrying out a wide range of ministries for various groups including the elderly, disabled, and impoverished individuals. Represented by the Becket Fund for Religious Liberty, Catholic Charities and other organizations have challenged the state’s actions. While the group assured that its employees would still receive unemployment coverage, it would now be provided by a church-affiliated entity rather than the state. Critics argue that employees in other workplaces may not receive the same treatment. With forty-seven states and the federal government offering exemptions from unemployment taxes for religious organizations similar to Wisconsin’s, the court’s decision could have significant implications. The debate also involves discussions around the impact on approximately 787,000 employees working for Catholic-affiliated health care systems and over a million workers employed by religiously affiliated organizations. Wisconsin highlighted that Catholic Charities had been part of its unemployment insurance program without issue since 1971. This article has been updated following oral arguments. To stay updated on more CNN news and newsletters, you can create an account at CNN.com.
