Supreme Court upholds religious tax exemptions in Catholic Charities case
Wisconsin just learned a costly lesson about religious liberty. The Supreme Court unanimously ruled that the state violated the First Amendment by denying Catholic Charities Bureau a tax exemption, as Breitbart reports, smacking down a clear case of discrimination. This decision is a win for faith-based groups who serve without preaching.
In a 9-0 ruling, the Supreme Court found Wisconsin’s denial of tax-exempt status to Catholic Charities Bureau unconstitutional, reversing the state’s top court.
The case, Catholic Charities Bureau v. Wisconsin Labor and Industry Review Commission, No. 24-154, centered on whether the organization qualified as a religious nonprofit. It’s a sharp reminder that the government can’t play favorites with faith.
Back in 2016, Catholic Charities Bureau and four sub-entities applied for a tax exemption under Wisconsin law. The law grants exemptions to nonprofits “operated primarily for religious purposes” or controlled by a church, in this case, the Roman Catholic Diocese of Superior. The group argued its work aligned with Catholic teachings on charity.
Sotomayor: Easy case
Wisconsin’s Supreme Court, however, wasn’t convinced. It ruled Catholic Charities didn’t qualify because it doesn’t proselytize or restrict services to Catholics, claiming the group wasn’t “primarily” religious. Serving everyone equally disqualifies you from being devout.
Justice Sonia Sotomayor, writing for the court, called this a no-brainer. “There may be hard calls to make in policing that rule, but this is not one,” she wrote. Wisconsin’s logic crumbled under the weight of basic constitutional scrutiny.
Sotomayor didn’t stop there. “When the government distinguishes among religions based on theological differences in their provision of services, it imposes a denominational preference that must satisfy the highest level of judicial scrutiny,” she added. Translation: You can’t punish a group for how it practices its faith.
Unanimous ruling sends message
The Supreme Court’s unanimous decision sent the case back to Wisconsin for further proceedings. Sotomayor concluded, “Because Wisconsin has transgressed that principle without the tailoring necessary to survive such scrutiny, the judgment of the Wisconsin Supreme Court is reversed.” The state’s attempt to redefine religious purpose just got schooled.
Catholic Charities made its case clear. “Catholic teachings do not permit ‘misusing works of charity for purposes of proselytism,’” the group stated.
Forcing them to evangelize to qualify for an exemption is like telling a chef to burn the meal to prove they’re cooking.
Eric Rassbach, an attorney for Becket representing Catholic Charities, celebrated the ruling. “The Supreme Court’s ruling reaffirms the core First Amendment principle that government cannot prefer or favor any one religion over another,” he said. That’s a polite way of saying Wisconsin’s bias got caught red-handed.
Broad impact anticipated
Rassbach took to X to underscore the ruling’s reach. “This decision therefore protects the right of religious groups of all stripes -- including Jews, Muslims, and Hindus -- to care for the poor and needy consistent with their sincere religious beliefs about the nature of charity,” he posted. It’s not just a Catholic victory; it’s a shield for all faiths.
He didn’t stop there. “And the decision makes clear that religious exercise is not just what goes within the four walls of a church on Sunday but includes what happens when religious Americans serve their communities,” Rassbach added. Wisconsin’s narrow view of religion just got a reality check.
The ruling’s unanimity is telling. “Finally, the fact that the opinion was unanimous underscores that religious liberty is not a ‘left’ or ‘right’ issue, but a fundamental freedom that protects all Americans,” Rassbach said. Even a divided court agrees: Faith isn’t a government punching bag.
Lessons for state bureaucrats
Wisconsin’s blunder shows what happens when bureaucrats think they can outsmart the Constitution. By denying Catholic Charities an exemption for not fitting a cookie-cutter mold of “religious,” the state stepped on a First Amendment landmine. Actions, as they say, have consequences.
The case now returns to Wisconsin’s courts, which must align with the Supreme Court’s ruling. Catholic Charities, and groups like it, can continue their work without the state’s theological nitpicking. It’s a victory for common sense and charity.
This ruling isn’t just about tax exemptions; it’s about government overreach. When states start deciding what counts as “religious enough,” they’re not just taxing wallets -- they’re taxing freedom.
The Supreme Court just reminded everyone: Faith-based service isn’t up for debate.





