There are also many crimes that are worse, though it's not a competition. Almost all crime is hate or lack of love.

People should also be punished only for their actions, not their beliefs. However people should be taught morality, love etc..for all mankind and hopefully corrected if they actually are racist or likewise hold other immoral beliefs

Freedom of belief, but punished according to the law. And taught and corrected for true and wholesome beliefs

Alma: 30: 11

11 For there was a law that men should be judged according to their crimes. Nevertheless, there was no law against a man’s belief; therefore, a man was punished only for the crimes which he had done; therefore all men were on equal grounds

People can believe horrible things, hopefully efforts are made to correct and teach.

Good beliefs and faith are required for some achievements such as being worthy of the temple. I don't believe racist beliefs are consistent with being worthy for example, though for some, even some elderly etc.., that may be a life long journey.

Notice that freedom of belief is not the same as freedom of speech. Though the lines do cross. I believe in freedom of belief but not total freedom of speech such as hate speech, inciting speech. I know that clouds what is belief and what is just hateful. Though I feel like the Nephites got it more correct than the founding fathers.