Wait... illegal to refuse?
As in "I won't hire you because you're a transvestite."?
or
"I didn't hire the transvestite because another person was more qualified."?
Because there's nothing wrong with the second one. That said "We're already tolerant enough" makes it sound a lot like "We put up with these other people, you want us to tolerate transvestites too?!"
--
http://img.imgcake.com/AlecTrevylan006/darkyounglinkshieldpngyg.png