I never cut the tag off the wash cloths. I specifically shop for WC with the rounded tag that makes a makeshift hook. I then have a hook in the shower that l hang it on so it dries. Next time I get in the shower the dry WC goes in the hamper. This eliminates moldy WC in the hamper since it goes in dry.

As far tags in clothes I tend to leave them in, probably just out of laziness. If it scratches I will cut it out. Another reason I almost always leave tags in undies is because they put a stock number/style number on the tags. Many times after I get a pair of undies/bra home and wear for a couple months I decide I would like another and it is so much easier to track down an item if you have the style number.