You got the tolerance right, however money and social classes do exist in the federation, they're just not visible from a military perspective. Hence creating the illusion that it is a socialist state. In reality their currency is the same as the currency of the frengi, and in the most recent Star Trek movies you will see Kirk tipping the bartender hence breaking the illusion.
I'm sorry but the Federation is not socialist, but the Romulans are.
Under socialism, which is an idea that workers are able to democratically control a workplace, the main incentives are the advancement of the basic humanistic rights such as property, life, and freedom from oppression. In such ways the basic functions of the community are regulated through the government which is a democratically elected body. Under socialism everyone is able to own property including their own house, vehicles, and even entertainment systems. The only improbable actions, which presents a danger within socialism, is the underlying issue of amoral humans. In that sense, as Einstein pointed out in "Why Socialism?", the educational systems within a socialistic society must be orientated towards social goals such as the freedom to marry, religious freedoms, and tolerance of other races.
In no way is socialism about total government control and does not penalize anyone for their talents. The only down side to a socialistic society are the taxes to maintain basic human rights and functions; such as roads, health care, and education.
Does that answer your question?
Also I find it ironic that you base your image off a notoriously socialist program such as Star Trek. Did you know that Roddenberry was a socialist?
Is your answer for everything hippies? Was Einstein a hippie? How about MLK? FDR? Shall I also mention Eugene Debs? These were hard working people who wanted to do the best thing for this country. They believed in a society that had equal opportunity. To believe that they requested equal achievements is a clear and idiotic notion to harbor. Yes men aren't angels, but even men (and women) must rise above themselves to achieve great things. If everyone sat by while injustice continued in this world, we be no different than the devil.
So go ahead, blame socialists for your problems. Write them off as nonexistent. But never insult us for your reality, or lack there of.