1954

Hawaiian Tax Refund

Hawaiian DJ Hal Aku Head Lewis announced on KHON radio that the U.S. Senate had not only approved Statehood for Hawaii but had also provided for an immediate refund of all 1953 Federal taxes to Island residents. The news caused massive turmoil throughout Hawaii. Radio stations, newspapers, and the Internal Revenue Bureau were flooded with calls from people seeking more information. Many banks received calls from people who wanted to place orders for stock and bond purchases with their forthcoming refund. The announcement seemed plausible because a Hawaiian tax refund had been in the news recently. Congressman Joseph Farrington had suggested that islanders should be given a refund of all federal taxes they had ever paid if Hawaii wasn't granted full statehood. In reality, Hawaii only achieved statehood in 1959, not 1954, and islanders' taxes were never refunded.