The bags are just a white lunch sack that is punched along the top using a Martha Stewart scalloped edge punch (decorative scissors would work, too).
I cut the tags on my Silhouette. It is a two piece tag that I designed myself (although, I'm being liberal with the word "designed" - the software is so easy to use).
In other news, I was diagnosed with shingles yesterday. Boo hoo for me. I am accepting all forms of pity. :) Pray for me that it will pass quickly? Thanks.