The tag itself was made using layering stencils with texture paste for the stars and distress ink for the stripes. I used Tim's rosette die to create the ribbon and his blueprint stamp USA (cut out with my Stamp 2 Cut), then water colored and glossy accents to give dimension and texture.
The background is a full on flag made by repeating the layering stencil stars using texture paste. I then colored over each section with the Distress stains, wiping off the stars (as a resist) when I was finished. And YES that is white distress stain Picket Fence in the middle layer- LOVE that!!. A little black soot around the edges to grunge it up!
I am entering this in the CC3C #4 which can be found here