I'm giving this one a poetry tag even though it's not strictly poetry. It's a collection of short stories and whimsical poems that take place in many places and times. Think "The Book of Virtues", but the stories are generally longer. Characters of all races are equally picked on, and there isn't any overt racism, just fun. The book itself is very large, and would be great to read aloud to a child.
Many thanks to the Bangor Public Library for the interlibrary loan. Many of my requests are routed from there and I can't help but think that if they'd hired me when I applied, they wouldn't have to keep mailing books to me ;)