Hawaii on a budget for His recommendations, adopted in several Latin American countries, revolve around the idea that the economically disadvantaged actually own assets, such as shanty homes that are not recognized officially. He claims that if these informal assets owned by the poor poverty 657 were legalized, the status of the poor would significantly improve. They could then show these assets as collateral and gain access to the credit markets. In addition, the World Bank, recognizing the importance of the OWNERSHIP of assets in fighting poverty, recommended in 1970s the creation of new assets in the economy, which could be channeled to the poor. Progressive income taxation, theoretically, is another way of redistributing income to reduce poverty and inequality. Taxing the higher income groups in a progressive manner and reducing their disposable income would indeed reduce the income gap between the higher and lower income groups. At the same time, however, it could adversely affect saving and investment in the economy and could reduce total income, rendering the lower-income groups worse-off. Hawaii on a budget 2016.