The following are some recent thoughts I had on the issue of separation of church and state that I wrote in a blog exchange with a friend. You have to understand that I am not highly political...and I usually try to avoid the topic at all cost. But with all that is going on in our culture and nation right now...I think we as Christians have to speak our mind about what is TRUTH!
I don't think we can completely separate our beliefs from governing in any capacity. As we know from scripture no authority is given unless the Lord permits it. This nation was founded by men that believed in God, feared God, and desired for the Gospel to effect everything including government and education. The New England Primer was used to teach children how to read and write while unfolding the gospel story. Separation of church is state was for the primary reason of preventing abuse...ie: the government telling us how, when, and where, and what we could worship.
1) The separation, as we understand it today, didn't even come up until about 1820 or 1830 in a letter from Thomas Jefferson.
2) The original intent was mainly to prevent the government from controlling (imposing) religion, not to keep the church from influencing government.
3) The proof that this is so is that most of the Founders violated what we now considered "the separation between church & state" on a practically weekly basis. They were always referring to God and the Bible, and putting their Christian convictions into practice.
4) The Constitution/Bill of Rights technically only limits "Congress" from imposing a federal established religion, and it left the states free to impose their own established state religions (and many early states had Christianity written into their own Constitutions).
As far as applying Christianity to the federal government, I don't know if very many Christians suggest a theocracy. Churches have a bad record of running governments, because they become worldly authorities with the power of "the Bible" behind them (even when they don't follow "the Bible").
More likely to be practical AND Biblical is something more like what we had when the Founders ran things. You're a Christian, and you look to the Bible for guidance in making and implementing laws.
We've gotten a LONG ways from this now, and it would be hard to get back there without some serious reform. Even Christians in government today don't act like Christians for the most part, and turn to worldly rules (i.e. using Man's Law rather than God's Law) to guide how they rule on a daily basis, mostly only bringing God or the Bible out in speeches and at election time.
The current interpretation of "separation of church & state" has to be broken down before any positive progress can be made. That probably won't happen unless Christians really make their presence known in politics, instead of expecting nominally Christian representatives to carry our water for us.
Apathy and "partyism" is a bad habit the Body of Christ has gotten into. Let's not be afraid to tell our parties where they should go, what they should do, and if they don't do what we want, we've got to have the will to leave them and not support them.
If we separate our nations government from the very foundations it was founded upon then we cease to be that nation!
Our rights are only as secure as the authority by which they're granted.
I have a "right to life" because God said "thou shalt not murder", NOT because some government said I could live.
I have a "right to personal property" because God said "thou shalt not steal", NOT because some government said it was OK for me to own something.
I have a right to "freedom of religion" because God said "thou shalt have no other gods before me", NOT because some government approved my beliefs.
And on and on...
Our "Bill of Rights" merely recognizes those rights that have their origin in God and by His authority. The Constitution simply lists our rights -- it does NOT grant them.
If man can grant rights, man can take them away. If God grants our rights, only God can take them away.
When people forget God, they forget the origin of their rights. They begin to look to the state as the grantor and keeper of their rights. When the state perceives this, it is quick to take hold of this power that the people have ceded to it. The state then often becomes one of the most hideous monsters known to mankind. People must not forget God or the fact that their rights come from Him. Government is simply God's tool for protecting and enforcing those rights -- it does not grant them.
Alexis de Tocqueville in the nineteenth century said this after visiting America:
"I sought for the greatness and genius of America in her commodious harbors and her ample rivers and it was not there; in her fertile fields and boundless forests and it was not there; in her rich mines and her vast commerce and it was not there; in her democratic Congress and her matchless Constitution and it was not there. Not until I went into the churches of America and heard her pulpits aflame with righteousness did I understand the secret of her genius and power. America is great because America is good, and if America ever ceases to be good, she will cease to be great."
That goodness comes from God and living out the principles he has for us in His Word.