Democrats set out to craft a sweeping package of tax reforms on Thursday that would provide relief for middle-class families and be paid for by a repeal of President George W. Bush’s tax cuts for the wealthy and new rules for private equity groups and hedge funds.

Charles Rangel, the chairman of the House ways and means committee, said he planned to submit a broad bill by the end of the year that would aim to instil a greater “sense of fairness” in the US tax system.