The Bad Hats goad Hoo Doo that the Good Hats have outwitted him ever since that human kid Mark arrived. Enraged, Hoo Doo captures the boy and Weenie Genie. Hoo Doo then transfers Weenie's power to Mark and turns him into Marco, a new and improved genie who does his evil bidding without fail. Hoo Doo is so pleased with his new genie that he fires all of his flunkies, then orders Marco to collect the Good Hats' taxes (paid in hat Checks). The Good Hats, stunned that their friend has turned on them, conspire to recover the magic ring and change Marco the Genie back into Mark the boy. Meanwhile, the Bad Hats attempt to get rid of Marco to get their jobs back.