Evil

[Zarathustra]

It's a wrong way to do.
Insulting,slandering or incitement to murder/racial hatred may do 'the victim' harm,which is against your principles of freedom;for instance,a racist group encourages murders against a category of people or  encourages a riot ;then there are several riots,resulting with the destruction of private goods and/or a few murders;now,who would be responsible for this situation? are they only responsible those who 'did' or those who 'did' plus those of the racist group who spread the word? In the USA , I guess that only those who committed the crimes would be guilty whereas in the European Union,those who 'did' plus those who encouraged would be punished.You see,freedom should be limited not only for acts but also for speech;according to me,100 % freedom of speech is a major flaw of the US constitution.Too much freedom may kill freedom,and your freedom of speech could cause civil wars in America.
There is a proverb of Confucius about the limits of freedom between you and me,which sums up what I think about it,but I don't remember ...
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I'm going to give you the benefit of doubt and assume you're not trolling with this one.

Your claim that "racism" is illegal in Europe is only valid if you mean acting upon racism, which is equally punishable here. If you mean racism itself is illegal, I'd like to see you enforce that. Let's say I'm a terrible racist against Polish people (chosen for this example only because that's the bulk of my ancestry). Have I commited a crime in thinking less of them, and thus must be punished? Nope. I've done nothing wrong but hold my own personal opinion. If a personal opinion is a crime, then YES, I can be prosecuted.

These people are free to hold any opinions they wish, but inciting a riot or being party to a murder are crimes just as any.

I'm with Rinnhart on this one. Understand a supposed flaw before you bash it. Read the constitution and tell me where it guarantees 100% freedom of speech. While you're doing that, Google the FCC.