I think you're right on this. If you read the article, it looks like no individuals are paying more taxes under the new law. The change in taxation simply reduced the value of their assets by making their investments less attractive than they were previously.
As far as I know, this is a corporate tax increase proposal on the trusts, with possibly some tax breaks for seniors to try to offset lower trust distributions. The problem that a lot of people are being hit with large capital losses that they can't afford.
That should read: The problem IS that a lot of people are being hit with large capital losses that they can't afford.