In "Capitalism, Alone", I introduced the concept of homoploutia. This is the situation when the same people are rich both in terms of labor incomes and capital incomes.

Here is the graph from "C.A". It shows the rising share of people in the US who are in the top decile by labor income and are also in the top decile by capital income.

It has far-reaching implications.
-Think what happens if *all* richest capitalists are also the richest salaried people. They have huge K incomes but also huge CEO-like salaries.
-It changes the nature of capitalism.

-Unification of K and L incomes in the same *persons* makes the elite more entrenched.
-In some ways makes capitalism less class-based, but on the other hand, it makes it more elitist, and this elite harder to dislodge (they are pretty diversified).
[A topic of Ch2 in C,A]

-It makes taxation policy harder. You cannot hit the top guys just by increasing K taxation.

-It tells us that economists have been asleep at the wheel by not focusing on classes and types of income but by working only with "agents" (thus confirming the unfortunate bias in economics).
-I am working on this with friends, so cool new results will be forthcoming.