If I allocated 16 gig of ram to the kvm, shouldn’t my memory usage be over 16 gig or ram with other Linux programs running?
Normally yes, in my experience.
I open a new tab on a browser and it hangs my system
Hangs the host or the VM guest?
If it's the host, does it ever happen when the VM isn't running?
If it's the guest, are you sure the VM itself isn't just paused? One thing I have noticed is that the VM will pause when either I run out of disk space, or (if using -snapshot) run out of RAM (because it's using RAM as an always-expanding disk image).