"To cut hair" is slang for "to smoke marijuana". The phrase is thought to stem from the practice of shaving one's head in order to pass a hair follicle drug test, though it may possibly be related to alleged hair loss from heavy marijuana use. Also in use, though less common are extrapolations such as "sheared".
1: Hey man, did you get the weed?
2: Yeah, let's go cut hair.
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