It shouldn’t be confusing. We’ve always known since the beginning of this country that all OTHER RELIGIONS in this world are FALSE ... all Christians have known anyway. Nothing has changed there in the entire history of this world, AND in spite of ALL OTHER RELIGIONS being false, the U.S. Constitution has protected all those other false religions just the same as CHRISTIANITY.
That is because we don’t have a theocracy, but a Constitutional Republic where people are allowed to CHOOSE A FALSE RELIGION under this Republic and that false religion is protected for all the people who want to follow those false religious practices. That’s ALWAYS been the case for the entire history of this country.
There will be a theocracy when Jesus, the Messiah of Israel comes to earth and RIPS THE US CONSTITUTION TO SHREDS and dispenses with it, along with all the other governing documents of all the other nations in the world, and sets up his ONE-WORLD GOVERNMENT in Israel, ruling over the entire world in the same manner as a dictator would (but we know he’s a benevolent dictator).
That ONE-WORLD GOVERNMENT of the Jewish Messiah is not here yet, so ALL THE FALSE RELIGIONS are protected in our present political system of government.
The 1st Amendment only provides for freedom of religion, prohibiting laws that establish religion, or ‘Congress; writing laws that deny the free exercise thereof.
Nothing in the 1st Amendment compels a religious enterprise to be tax exempt, or prohibits that organization from being newly denied tax exempt status. Even Christian organizations and churches have had their tax exempt status threatened for political involvement, or even something such as the Boy Scouts not allowing openly gay members has led to their tax exempt status being threatened, and these threats were made by this same current administration.
The Supremacy Clause is irrelevant to this consideration, given the fact that the Constitution itself does not command tax exempt status for organizations, and denial of tax exempt status neither constitutes “establishing”, nor dis-establishing a religion.