Based on the assumption that fair tax systems should consider differences in ability to pay resulting from income sharing within families, this publication analyzes the effects of three strategies for federal tax reform on families raising children: the Armey/Shelby flat tax, the Nunn/Domenici USA Tax System, and the Gephardt 10-Percent Tax. Part 1, "Introduction," summarizes the proposals, defines major terms, and compares tax incidence under the proposals and the impact of reduced tax burdens on investment income. Part 2, "Analysis of Specific Tax Reform Provisions Affecting Children and their Families," examines direct and indirect effects on families. Direct effects considered include size of the dependency exemption, tax credit for dependent children, earned income credit, head-of-household rate schedule, "kiddie tax," personal exemption, standard deduction, marital income splitting, alimony payment, child support payment, and child care tax credit. The indirect effects analyzed include elimination of charitable giving, deduction for home mortgage interest, and deduction for state and local taxes. Part 2 also suggests modifications to provide greater benefits to families with dependent children. Part 3, "Simulated Impact of Armey/Shelby Flat Tax on Families with Children," reports results of simulations of the effects on family tax burdens of shifting to a flat tax by comparing equal-revenue versions of the Armey-Shelby flat tax plan and current law. Part 4, "Conclusion," summarizes the report. An Executive Summary is included with the publication. Includes 15 tables and 7 figures. Appendices list supplementary tables and describe the tax model used for the simulation. Contains 49 references. (KDFB)