Dictionary definition of “circuit breaker”

circuit breaker

n. a rule or law that puts protective measures in place once a certain level of financial activity has been reached; (specifically) a law that provides tax refunds once a maximum of property taxes have been paid; a rule that shuts down or limits trading action when a stock market’s value or activity changes more than a certain percentage. Subjects: English, Money & Finance

Editorial Note: In Australia and New Zealand an additional meaning of the term is used, given by the Macquarie Dictionary as “an event, activity, etc., which acts as a distraction from previous preoccupations and tensions.”

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Citations: 1969 New York Times (Feb. 12) “Income Tax Rise Urged On States” (in Washington, D.C.) p. 21: The same kind of proposal is offered for property taxes, with a special commission endorsement of the “circuit breaker” provision of Wisconsin and Minnesota laws that give low-income elderly homeowners and renters credits against income taxes or outright refunds for sizable portions of the taxes they pay for shelter. 1988 James Sterngold New York Times (Jan. 12) “A Plea for Market Coordination” p. D1: We said there’s one market today, not many marketplaces and that you have to coordinate circuit breakers between the markets. Circuit breakers in Chicago are really price limits, ad the circuit breakers in New York are really trading halts. As a corollary, if you don’t like these circuit breakers, you have to be prepared to have the ones we had on the 19th and 20th of October. And those are ad hoc. 2003 Bill Fortier Worcester Telegram & Gazette (Massachusetts) (Oct. 28) “‘Circuit-breaker law’ worries schools” p. B1: The circuit-breaker law calls for 75 percent state reimbursement of the amount of money it costs to educate a student minus the $29,320. For example, subtracting the $29,320 from a total cost of $100,000 means the town should receive 75 percent reimbursement for the $70,680 difference between the two figures. 2006 Kay Soldier keepMEcurrent.com (Westbrook, Maine) (Sept. 14) “Easy money for most seniors”: I do qualify for the circuit breaker—or as I call it, rent refund program. This state program provides refunds to primarily property taxpayers, if their taxes exceed a certain percentage of income; however, the other part of the program provides relief to renters and there are more and more of us every day.

Posted 18 Sep 06 | Permalink | Tell a Friend