This week, Mayor Zohran Mamdani and City Council Speaker Julie Menin appeared to set aside their differences to advance a new budget solution: scaling back a lucrative tax credit used by wealthy business owners to help close the city's budget gap. The proposal, which targets what's known as the Pass-Through Entity Tax (PTET) credit, was swiftly rejected by Gov. Kathy Hochul.

NY1 investigative reporter Courtney Gross, and political reporters Bobby Cuza and Kelly Mena break down how the tax credit works, who benefits most, and why the governor pushed back.

Plus: Did Mayor Mamdani take a political hit? His endorsement of Lindsey Boylan fell short in a special election for a Manhattan City Council seat, raising questions about his influence. Meanwhile, the mayor waded into international controversy after appearing to pick a fight with the King over a disputed gem. The "Off Topic" team looks at Mamdani's busy week.