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Wisconsin Asks State Justices to Expand or End Religious Unemployment-Tax Exemption After 9–0 Supreme Court Loss

The Wisconsin Supreme Court is weighing remedies on remand after the U.S. Supreme Court found the state discriminated against Catholic Charities.

Overview

  • Attorney General Josh Kaul filed a remedial brief urging either broadening the statute to cover groups like Catholic Charities or striking the exemption entirely.
  • The Becket Fund, representing Catholic Charities Bureau, submitted a supplemental brief opposing elimination and asking the court to grant the exemption to its client.
  • The state high court ordered additional briefing on the remedy and is considering how to resolve the exemption’s future under Wisconsin law.
  • In June, the U.S. Supreme Court unanimously held that Wisconsin’s denial violated the First Amendment, with Justice Sonia Sotomayor stressing neutrality between religions.
  • Opponents of elimination warn that ending the exemption could impose new unemployment-tax costs on faith-based organizations, potentially reaching thousands of dollars.