We need to make a distinction between tax-exempt and non-taxable. If one really believes in the separation of church and state (and most who say they do really don't), then the church shouuld be viewed as non-taxable, since it doesn't belong to Caesar.

And with the resurrection of Christ, and his exaltation to the right hand of the Father, all political institutions must be subservient to him.

However, tax-exempt often comes with strings attached.

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J. B. Atken
John Knox PCA
Layman, M.A. student at Louisiana College