Increased taxation on unhealthy foods and drinks could reduce the incidence of obesity and related diseases In recent years, an increasing number of people have experienced obesity problems and the minimum age of overweight tends to increase decrease from year to year. In fact, most research shows that nearly one-fifth of children ages 6 to 11 are overweight, even though the number of obese children has nearly doubled in the past 20 years (Henshaw. 2011). Children have developed a bad habit like consuming unhealthy foods and drinks for a long time. How to control this condition is becoming an urgent thing that requires people to take action. Taxation of unhealthy diets could be improved to limit intake and reduce cases of obesity or other related diseases, such as diabetes. A consequence of this is that the increase in taxes, the inhibition of production, also produces negative effects on competition between companies (Williamson. 2008). In economics and related fields, a transaction cost is a cost incurred in constructing an economic exchange. When taxation on unhealthy foods and drinks increases, producers are expected to increase costs more than before. As a result, they do not have the will to produce the same quantity and quality as usual. It would have a negative influence on the development of those activities related to unhealthy diets. So that the unhealthy decline in production affects the competitiveness of businesses. Besides that, if the balance in this manufacture has been broken; producers who want to maintain market coverage could begin to change the way of production, producing healthier foods. Barasi believes that it is an effective way through public health policies to improve nutritional status (2003). Legally limit products in original materials, production and sales. And the government will encourage enterprises to produce more production and research them by focusing on healthy foods and defense-related diseases, which is not spared to ensure their profits, is a progress for producers towards a long-term sustainable development path. Furthermore, nowadays, you can find fast food restaurants everywhere in developed countries. According to the principle of leverage, which is one of the most important principles in economics, consumers could be directly affected by taxation and this would protect them from obesity and related diseases. Leverage theory is defined as the total long-term financing under the same conditions, the cost of debt paid by enterprises from operating profit is fixed, as operating profit increases or decreases, the cost of debt for each dollar of corporate profit will be correspondingly reduced minimum or greater burden, leading to additional earnings or losses per common share (Nicholson. and Snyder. 2011). Furthermore, it increases taxation on unhealthy foods and drinks; the cost of production would improve and would be limited by the increase in production prices; the decline in purchasing power and the reduction of individual consumption of unhealthy foods and drinks to reduce the likelihood of disease onset (Ogden, 2010). Furthermore, from this element it can be deduced that, under the guidance of the government, consumers change their eating habits, thus accelerating the withdrawal of unhealthy foods from the market by producers. This means that people would change with changes in taxation towards healthy eating and drinking habits. Furthermore, if the company in a relatively stable industry occupies a more favorable position in the market, then the