An unflattering reference to a persons' hair, as if their hair (cut, style, or just the condition of it) looks like a bad Wig or Toupée .

This saying originated in the northeast MN area in the late 80's. Also used between friends for good natured put downs, especially effective when the target is in a group of friends/peers.
"Wow Jim, nice rug!" (eyes glancing up to Jim's' hair and back).

"Nikki, look at the nice rug on that tranny over by the restrooms".

"You have a nicer rug than William Shatner"!
by Hammerxc July 22, 2011

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