While all governments are funded by their citizen's wealth Communists almost always take it to the extreme. Read up on the aftermath of almost any communist takeover: currency exchanges, assets seizures, wage controls and/or outright murder of the former elite. The almost all the nations wealth is quickly transfered to the government/party/leaders.
Socialists practice the same - just in moderation - but it is how all governments are funded. The trick is just to not go full retard like Venezuela and kill the golden goose.
I'm not sure governments are funded by their citizenry, those citizens have to conduct commerce in the nation's currency and pay taxes in the same currency, which is solely issued by the government. It becomes more of a social relationship that way.
Socialists practice the same - just in moderation - but it is how all governments are funded. The trick is just to not go full retard like Venezuela and kill the golden goose.