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I really don't understand the difficulty of this.
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It's really not that hard. All internet traffic gets where it's going by means of DNS servers. There are exactly 13 of these "root" name servers which provide DNS for the entire internet, and all of them live in the U.S. of A. Shut them down, and you can basically shut the internet down. Yes, there are name servers that will provide "some" service when the root servers are down, but will not be updated with any new or changed DNS names, and will be quickly overwhelmed with traffic. This is primarily because the caching of names/IP addresses these remote name servers perform is generally very poorly executed.
Even if DNS root servers physically lived outside of the U.S., Obama, at least under the terms of this proposed legislation, could order a shutdown of all communications into or outside of the U.S. and could easily isolate us should he so choose.