I am from Brazil... To be honest this would be a complete disaster here.
1. My city main hospital, belongs to Catholic Church, same applies to many other cities.
2. Many of our leading universities, doing research and important work, belong to Catholic Church, notably PUC-RIO, the creators of Lua language.
3. Protestant churches here are the major organizations driving away drug dealers, some took the donations to build better light system in public parks, provide free food, counseling, and so on.
4. We have an hospital considered one of the best of world for certain treatments, to the point people from first world countries sometimes come here for this hospital, and it belongs to a Jewish organization.
And the list goes and goes on... a lot of public infrastructure here belongs to religious organizations, if the government taxed them the result would be the government suddenly needing to spend a ton of their own money replacing what these organizations are doing, and I doubt it would work well, for example the government-owned hospital in my city killed people more than once for stupid reasons (including giving penicilin to a guy that warned them he was allergic!), so the population rely on the catholic hospital instead.
EDIT: reading a sibling comment made me remember another important one: the religious organizations here are major drivers for cultural education, for example our public-owned orchestras are often filled with church-trained people, ditto for audio engineering, theather and many other "art"-related professions.