Why does income inequality occur?

Why does income inequality occur?

     Income inequality is the difference in wages between the rich and the poor. This occurs for many reasons, the most obvious reason is the differences in wages and how those wages are determined. Different workers recieve different wages, based on their skills and what the job requires. More education results in higher wages, usually. As more people recieve an higher education, however, the demand for more skilled workers decreases, and with a higher supply of these workers, the price needed to pay the skilled workers decreases. Supply and demand of workers is one major reason behind income inequality.
    Another reason for income inequality are taxes. Higher income individuals are often taxed less than the middle-class. Corporations and people with investments are not taxed at the rates that the middle class are, so the rich can keep more of their income, as opposed to the middle-class who are subjected to Medicare, Social Security, and other federal taxes. Corporations and higher income individuals get more tax breaks.