diff --git a/services/web/app/views/project/list.jade b/services/web/app/views/project/list.jade
index 3d8026eb1b..421d6baebe 100644
--- a/services/web/app/views/project/list.jade
+++ b/services/web/app/views/project/list.jade
@@ -68,7 +68,7 @@ block content
 							li 
 								h2 Folders
 							li(
-								ng-repeat="tag in tags",
+								ng-repeat="tag in tags | filter:nonEmpty",
 								ng-controller="TagListItemController",
 								ng-class="{active: tag.selected}"
 							)
@@ -189,13 +189,14 @@ block content
 												span.caret
 											ul.dropdown-menu.dropdown-menu-right.js-tags-dropdown-menu(
 												role="menu"
+												ng-controller="TagListController"
 											)
 												li.dropdown-header Add to folder
 												li(
-													ng-repeat="tag in tags | orderBy:'name'",
+													ng-repeat="tag in tags | filter:nonEmpty | orderBy:'name'",
 													ng-controller="TagDropdownItemController"
 												)
-													a(href="#", ng-click="addOrRemoveProjectsFromTag()")
+													a(href="#", ng-click="addOrRemoveProjectsFromTag()", stop-propagation="click")
 														i.fa(
 															ng-class="{\
 																'fa-check-square-o': areSelectedProjectsInTag == true,\
@@ -206,7 +207,7 @@ block content
 														|  {{tag.name}}
 												li.divider
 												li
-													a(href="#", ng-click="openNewTagModal()") Create New Folder
+													a(href="#", ng-click="openNewTagModal()", stop-propagation="click") Create New Folder
 
 										.btn-group(ng-hide="selectedProjects.length != 1").dropdown
 											a.btn.btn-default.dropdown-toggle(
diff --git a/services/web/app/views/project/new.jade b/services/web/app/views/project/new.jade
deleted file mode 100644
index 834367ffde..0000000000
--- a/services/web/app/views/project/new.jade
+++ /dev/null
@@ -1,19 +0,0 @@
-.container
-	.page-header
-		h1 New File
-	.row
-		.span12.columns
-			form#newFile(enctype='multipart/form-data', method='post')
-				fieldset
-					.clearfix
-						label(for='xlInput') Name 
-						.input
-							input.xlarge(type='text', name='name')
-					.clearfix
-						label(for='xlInput') Upload File 
-						.input
-							input#file_upload.input-file(type='file', name='image')
-	
-					.actions
-						Button.primary.btn(type='submit') Save
-
diff --git a/services/web/public/coffee/app/directives/stopPropagation.coffee b/services/web/public/coffee/app/directives/stopPropagation.coffee
new file mode 100644
index 0000000000..0a8c5d2779
--- /dev/null
+++ b/services/web/public/coffee/app/directives/stopPropagation.coffee
@@ -0,0 +1,13 @@
+define [
+	"base"
+], (App) ->
+	App.directive "stopPropagation", ($http) ->
+		console.log "Registering"
+		return {
+			restrict: "A",
+			link: (scope, element, attrs) ->
+				console.log "linking"
+				element.bind attrs.stopPropagation, (e) ->
+					console.log "click"
+					e.stopPropagation()
+		}
diff --git a/services/web/public/coffee/app/main.coffee b/services/web/public/coffee/app/main.coffee
index b4c8c03271..a2c60bc843 100644
--- a/services/web/public/coffee/app/main.coffee
+++ b/services/web/public/coffee/app/main.coffee
@@ -2,5 +2,6 @@ define [
 	"project-list"
 	"user-details"
 	"directives/asyncForm"
+	"directives/stopPropagation"
 ], () ->
 	angular.bootstrap(document.body, ["SharelatexApp"])
\ No newline at end of file
diff --git a/services/web/public/coffee/app/project-list.coffee b/services/web/public/coffee/app/project-list.coffee
index 8efd24ecc8..71b7caf5ac 100644
--- a/services/web/public/coffee/app/project-list.coffee
+++ b/services/web/public/coffee/app/project-list.coffee
@@ -142,6 +142,8 @@ define [
 				$scope.projects.splice(index, 1)
 
 		$scope.removeSelectedProjectsFromTag = (tag) ->
+			tag.showWhenEmpty = true
+
 			selected_project_ids = $scope.getSelectedProjectIds()
 			selected_projects = $scope.getSelectedProjects()
 
@@ -192,9 +194,10 @@ define [
 			$scope.tags.push {
 				name: name
 				project_ids: []
+				showWhenEmpty: true
 			}
 
-		$scope.openNewTagModal = () ->
+		$scope.openNewTagModal = (e) ->
 			modalInstance = $modal.open(
 				templateUrl: "newTagModalTemplate"
 				controller: "NewTagModalController"
@@ -421,6 +424,12 @@ define [
 			for tag in $scope.tags
 				tag.selected = false
 
+		$scope.nonEmpty = (tag) ->
+			# The showWhenEmpty property will be set on any tag which we have
+			# modified during this session. Otherwise, tags which are empty
+			# when loading the page are not shown.
+			tag.project_ids.length > 0 or !!tag.showWhenEmpty
+
 	App.controller "TagListItemController", ($scope) ->
 		$scope.selectTag = () ->
 			$scope._clearTags()
@@ -428,9 +437,6 @@ define [
 			$scope.setFilter("tag")
 
 	App.controller "TagDropdownItemController", ($scope) ->
-		$scope.$on "selection:change", (e, newValue, oldValue) ->
-			$scope.recalculateProjectsInTag()
-
 		$scope.recalculateProjectsInTag = () ->
 			$scope.areSelectedProjectsInTag = false
 			for project_id in $scope.getSelectedProjectIds()
@@ -442,7 +448,7 @@ define [
 			if $scope.areSelectedProjectsInTag and partialSelection
 				$scope.areSelectedProjectsInTag = "partial"
 
-		$scope.addOrRemoveProjectsFromTag = () ->
+		$scope.addOrRemoveProjectsFromTag = (e) ->
 			if $scope.areSelectedProjectsInTag == true
 				$scope.removeSelectedProjectsFromTag($scope.tag)
 				$scope.areSelectedProjectsInTag = false
@@ -450,6 +456,10 @@ define [
 				$scope.addSelectedProjectsToTag($scope.tag)
 				$scope.areSelectedProjectsInTag = true
 
+		$scope.$on "selection:change", (e, newValue, oldValue) ->
+			$scope.recalculateProjectsInTag()
+		$scope.recalculateProjectsInTag()
+
 	App.controller 'NewTagModalController', ($scope, $modalInstance, $timeout) ->
 		$scope.inputs = 
 			newTagName: ""