Official recognition of religion

Why are certain churches given tax exempt status? I know it has something to do with seperation of Church and State and all that, but isn't the granting of tax exemption a reduction of religious freedom?  By it's very act it legitimizes some religions over others.  Take that family of the dead soldier who couldn't put a Wiccan symbol on his grave because it wasn't "recognized".  How is that a protection of religious freedom?  Why does a Southern Baptist church deserve tax exemption anymore than a Church of Satan?  The government is not supposed to give preference of one religion over another, but the very act of recognizing certain religions violates this.

>>2
Yeah, but that's like saying it's okay for the dog to shit on the couch because it already shits on the carpet.  Sometimes you just have to beat the dog.