There is a stark difference between socialism rooted in the above idea and socialism rooted in jealousy and vindictiveness toward the wealthy just because they're wealthy. We're not trying to punish the wealthy and we can still allow them to be very wealthy. But as the US currently stands, the wealthy could contribute much more while still having far greater quality of life than almost everyone else.
The reality is that people compete for status, success, money, and power, within the framework they are given.
I mean we've actually tried this. If you take a group of incredibly skilled business people and tax them heavily you don't get some dystopia, you get Switzerland.
And what important/useful companies, tech or otherwise, got their start in Switzerland?
That's fucking idiocy. Or more accurately, propaganda from a billionaire with extreme vested interest in this topic.
It's pretty straightforward to say "Go ahead and start Google, and if it succeeds we're going to have some basic rules about worker's rights and compensation you'll have to follow, and we're going to tax a much larger percentage of your personal gains, but you'll still be very, very rich". At which point you're also fighting economic inequality.