Should Churches Be Tax Exempt?

This question goes to the very foundation of the US Constitution, namely the first amendment and the clause of separation between church and state. Frankly, is giving any religious institution the ability of being tax exempt a violation of this separation?

In such effect I believe that it does violate the Constitution of the United States.

"A more certain way to attack religion is by favor, by the comforts of life, by the hope of wealth; not by what reminds one of it, but by what makes one forget it; not by what makes one indignant, but by what makes men lukewarm, when other passions act on our souls, and those which religion inspires are silent. In the matter of changing religion, State favors are stronger than penalties". -- The Spirit of the Laws, Baron de Montesquieu (1748)

Indeed by allowing such favors as tax exempt status is indeed a favor from the state (federal government), you get problems especially when you legally are supposed to be a nation of secularism. Now there is a difference between acting in a governmental capacity one must administer laws and policies in a secular fashion. However, when you are in your private home, in the street, and in your thoughts you have the freedom to exercise and not to exercise any religion or no religion you the individual so choose.

Such tax exemptions status must be available to all groups. The only restriction on how the legislatures act when it comes to creating and giving out tax exemptions is that they are not permitted to do so based upon preferences for content or based upon a group's failure to take certain oaths. In other words, once tax exemptions are created at all, the process for allowing certain groups to take advantage of them is restricted by constitutional rights.

In particular, they cannot give exemptions to a group merely because the group is religious, and they cannot take away exemptions for the same reason. If tax exemptions are created for magazines or books or whatever, the exemptions must be available to all parties, not just religious and not just secular applicants.