Do Protestants believe that all sins are equal?
One might say that a glass with 1" of water in it was "equal" to a swimming pool with 1" of water in it.
This can illustrate the fact that any sin causes us to fall short of the perfection to which we are called.
James 2:10 For whosoever shall keep the whole law, and yet offend in
one point, he is guilty of all.
At the same time there is proportionality in regard to punishment;
Luke 12:47-48 And that servant, which knew his lord's will, and
prepared not himself, neither did according to his will, shall be
beaten with many stripes. But he that knew not, and did commit
things worthy of stripes, shall be beaten with few stripes. For unto
whomsoever much is given, of him shall be much required: and to whom
men have committed much, of him they will ask the more.
As a protestant our focus is more on life as Christians. Christians do not come under judgment for punishment of their sins;
John 5:24 Verily, verily, I say unto you, He that heareth my word,
and believeth on him that sent me, hath everlasting life, and shall
not come into condemnation; but is passed from death unto life.
Those who do not have new life in Jesus should be more concerned about punishment for sins;
Revelation 20:12 And I saw the dead, small and great, stand before
God; and the books were opened: and another book was opened, which is
the book of life: and the dead were judged out of those things which
were written in the books, according to their works.
Those who are Christian will also be judged, not for punishment, but for reward.
1 Corinthians 3:11-15 For other foundation can no man lay than that
is laid, which is Jesus Christ. Now if any man build upon this
foundation gold, silver, precious stones, wood, hay, stubble; Every
man's work shall be made manifest: for the day shall declare it,
because it shall be revealed by fire; and the fire shall try every
man's work of what sort it is. If any man's work abide which he hath
built thereupon, he shall receive a reward. If any man's work shall
be burned, he shall suffer loss: but he himself shall be saved; yet so
as by fire.
As Christians we still sin and these sins great and small can poison our relationship with God and others and we are told that our confession helps to repair these relationships.
1 John 1:9 If we confess our sins, he is faithful and just to forgive
us our sins, and to cleanse us from all unrighteousness.
James 5:16 Confess your faults one to another, and pray one for
another, that ye may be healed. The effectual fervent prayer of a
righteous man availeth much.
I would says that Protestants generally see sin as both equal in terms of keeping us from God's holiness as well as unequal in terms of its effects. Although I do not think we would see just two categories of classification ("mortal" and "venial" sins).