Literacy is an essential skill that strongly impacts a child's future. Reading to and with your child not only creates a strong bond, but it also forms good habits and teaches that reading can (and should) be a fun experience. The Association of American Publishers cites various findings about the impact of reading on early development here. While you are probably already aware of the importance of literacy, the findings are worth taking a look.
Books By Age
Kids of different ages have different needs when it comes to reading. Below you will find suggestions below from the National Education Association (compiled by teachers across the country) and from About.com. Up-to-date releases are listed by The Children's Book Council and the New York Times.