The literal translation of this Spanish expression is “to cut the cod“. It is used when we want to say that someone is who calls the shots. For example: Angela Merkel “corta el bacalao” in Europe.
There are several theories behind the origin of this idiom: On one hand, there are people who say that in grocery stores when dry cod was selled the boss was who cut it with a special knife. On the other hand, there are people who think that this saying comes from the north of Spain, where is typical the consumption of this fish and the householder was who was responsible for cutting and serving it.
And what about your house, who “corta el bacalao” there?