The Wisconsin Supreme Court has decisively blocked Democrat Attorney General Josh Kaul’s brazen attempt to defy a unanimous U.S. Supreme Court ruling, affirming that the Catholic Charities Bureau (CCB) and its sub-entities qualify for a vital tax exemption from the state’s unemployment system. This victory upholds religious liberty and rejects government overreach that sought to penalize faith-based organizations for their Christian mission. Critics, including the Becket Fund for Religious Liberty, hailed the decision as an end to the state’s “tomfoolery,” emphasizing that Wisconsin should have accepted its 9-0 SCOTUS loss rather than doubling down on anti-religious discrimination.
The saga began in 2016 when CCB pursued the exemption, only to face repeated denials from state officials and courts claiming the group did not operate primarily for religious purposes. The case escalated to SCOTUS, where Justice Sonia Sotomayor, writing for a unanimous court, declared Wisconsin’s application of the law violated the First Amendment by failing to maintain neutrality between religions. Remanding the case, SCOTUS instructed proceedings consistent with granting the exemption, underscoring that such decisions are not “hard calls” when constitutional protections for faith are at stake.
Undeterred by the high court’s rebuke, AG Kaul requested additional briefing and argued for eliminating the exemption entirely, a move that would keep Catholic Charities entangled in the unemployment system while ostensibly addressing the First Amendment issue. This radical proposal drew sharp protests from CCB, highlighting Democrat tactics that prioritize bureaucratic control over religious freedoms and charitable work serving the vulnerable.
In its Monday order, the Wisconsin Supreme Court rejected Kaul’s scheme, remanding the case with instructions to grant the exemption and vacate prior denials. Becket Fund’s Eric Rassbach celebrated the ruling as safeguarding not just Catholic Charities but all faith-based groups reliant on such protections, chastising Kaul for “punishing churches” and urging that “penalizing charities is not a winning legal strategy.”