A general algorithm for internalizing externalities (for the set of all conscious beings) would be the greatest human achievement I can think of.
tax only non renewable or finite resources and not labour
Finite resources include - land use (be it housing, leisure or agriculture though desirable locations should have higher taxes) - resources (metals, minerals) - fossil fuels
Not to be taxed: - labour - wealth (having money has no environmental impact. It's the spending that matters) - added value (get rid of VAT)
I feel like all tax systems are based on what is easy to be taxed, but I have never heard a good argument on why e.g. income should be taxed, but environmental impact not