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Then you lose an argument for separation of religion and state. Without tax exemption, religious organizations are going to naturally lobby a favourable tax policy and so on as the state is putting their fingers in the religious matters against the principle of separation of state and religion.

The problem here is the potential for throwing the baby out with the bathwater. There's only a relatively few wealthy churches in US as opposed to the tens to hundreds of thousands that barely make their ends meet with donations. So doing something like messing with church taxes could...

Beto O'Rourke seems to fail to comprehend that this is the State involving itself in religion and the Church which will then fairly cut both ways if the Church as a response tries to acquire state power and dissolve the separation of State and Church.