I do not understand the difference between socialism and social democracy?

[Alex]

You already asked a similar question, and I already answered it. But I'll go again...

"Now if Im correct, socialism is a classless society where means of production are owned by the people." Yes, you are correct. "So does this mean everyone makes the same amount of money since society is classless?" Well, there are many different ideas about what a socialist economy would look like, but most of them envisage the abolition of money. It would either be replaced by some sort of labour voucher system or by a gift economy.

The rest of what you say is fairly accurate: social democracy has different social classes but with progressive taxation to provide for a welfare state and public services, and European nations are social democracies rather than socialist (actually, only a few could be described as social democracies, more have neo-liberal free market economies).

For more information on possible forms a moneyless socialist economy would take, see:
http://en.wikipedia.org/wiki/Labour_voucher
http://en.wikipedia.org/wiki/Gift_economy