In Jesus’ statement about God and Caesar, he established the broad outlines of a new order in which “the things that are God’s” are not to be under the control of the civil government (or “Caesar”). Such a system is far different from the Old Testament theocracy that was used for the people of Israel. Jesus’ new teaching implies that all civil governments—even today—should give people freedom regarding the religious faith they follow or choose not to follow and regarding the religious doctrines they hold and how they worship God.
From How Christians Should Relate to Government by Wayne Grudem. This is wrong. A huge leap in application and terribly wrong one for that matter. Jesus's teaching gave freedom for people to worship the Lord God, not just any religion! There's no where in the Bible where freedom of religion is encouraged whether through a civil government or another medium. To suggest otherwise is heresy.