"This proposal is going to help consumers, it's going to help restaurants, it's going to help merchants and it's going to help a lot of people who depend on the holiday season to get their business to survive," he said.

But Republicans were hazy about the whether or not state coffers would benefit or be drained by the proposal. Assembly Republican Leader Alex DeCroce, R-Morris, Passaic, said money lost in the proposal "could very well be" made up by additional sales from people living in neighboring states.

They said sales tax holidays of up to a week take place in 16 other states and Washington, D.C., but accurate figures cannot be extrapolated.

Republicans stood next to a chart that said May 2008 sales tax estimates would increase 2 percent over the current fiscal year, while October figures showed a 5.2 percent drop. DeCroce quoted the nonpartisan state Office of Legislative Services in saying the state received $500 million in sales tax from last year's holiday shopping.

"Some people all say that the state cannot afford to do this," DeCroce said. "We say we can't afford not to do this."

Republicans said $1.3 billion in budget cuts the GOP first proposed in the spring could cover any losses. Democrats, who control the governor's seat and both houses, have largely ignored the proposal.

In a separate statement, Republican U.S. Sen. candidate Dick Zimmer said he supports the initiative and called on his opponent, U.S. Sen. Frank Lautenberg, D-NJ, to similarly back the plan.

Zimmer said any revenue loss should be matched with spending cuts. "New Jerseyans are facing an affordability crisis and they need immediate relief," he said in a statement.

Retailers generally favored the proposal.

Polisina said his address before the state Restaurant Association in Cape May's Congress Hall on Monday was well received. The New Jersey Coalition of Automobile Retailers and Commerce and Industry Association of New Jersey both supported the proposal in statements.

During a later press conference at the Hamilton Mall on Tuesday, Polistina said the plan would give the state a "needed economic boost."

"We are facing a time when people in this state are struggling to make ends meet," he said. "It will help them get through the holiday season."

New Jersey Retail Merchants Association President John Holub, who attended the mall press conference, said merchants can make up to 40 percent of their business during the time holiday shopping season.

"It's the most important time for retailers," Holub said.

But Democrats were cool to the idea.

Assembly Speaker Joseph Roberts, D-Camden, said Republicans should be credited with coming up with ideas, but said beyond current proposals, he would give this due consideration. Democratic Party Chairman and Assemblyman Joseph Cryan, D-Union, said in a statement, "This sounds like it came from George Bush's economic playbook, and we all know how well that turned out."

Corzine is expected to call for public works campaigns such as stepped-up road and school construction as well as a proposal to help overburdened state residents cope with mortgages at a special joint session Thursday.

Corzine spokesman Robert Corrales said the governor has asked for his cabinet to propose some $500 million in cuts. "Removing five to six weeks of revenue will not help people get through this financial storm when they are focused on keeping their jobs and homes right now, not their holiday shopping."

Staff writer Thomas Barlas contributed to this report.

E-mail Derek Harper:

dharper@pressofac.com