This case asks the Court to determine whether Wisconsin violates the Constitution’s First Amendment by denying a particular religious organization a tax exemption under Wisconsin’s unemployment compensation system. Catholic Charities argues that the Wisconsin Supreme Court’s interpretation and application of the statute to deny the organization an exemption violates the First Amendment’s Establishment and Free Exercise Clauses. Specifically, Catholic Charities argues that the court’s decision violates the church’s autonomy, entangles the state in religious matters, and discriminates among religions for their church organizational structure and their distinct religious beliefs and practices. Wisconsin, on the other hand, maintains that the exemption and its interpretation effectuate no constitutional violations. Wisconsin argues that the exemption and the court’s interpretation do not infringe on the church’s autonomy, do not cause the state to become excessively entangled in religion, and do not discriminate among religions. This case directly calls for a balancing of church and state interests while also having implications for both charities and unemployment insurance on a large scale.