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It completely depends on the tags, IMO. Some of the Coach ones are cute and not obnoxious. Some of the MK ones are really huge and detract from the bag for me. Each bag can be different, so I think it is a matter of taste and not etiquette.
I wear vintage coach and take the tags off most of the time and keep them in the inside pocket. Partly for appearance and partly so they won't fall off or get lost.
