The article explores how family taxation can be designed when considering that people's decision to have children is influenced by their abilities and wages. The researchers found that in a situation where the government cannot directly observe personal abilities, the number of children a household has can provide valuable information about their characteristics. They concluded that, without a specific preference for reducing inequality, policies should generally support low-wage households over high-wage ones. Additionally, the optimal approach to family taxation may involve a combination of taxes on the number of children, subsidies on child-specific items, income support for low-wage families, and progressive income taxes for all.