The bottom line is, your attempt to internalize externalities is proof that you don't know what you're talking about because externalities by definition cannot be internalized.
All this liberal economics is just like that last wave of liberal economics that resulted in 100 million deaths over the period from 1900-2000, only it isn't united under a common term like "socialism" or "communism" but it amounts to the same-- totalitarianism sold as being "good for you".