255/65/16 clears with no lift at all on a stock 16x7 wheel. I personally wouldnt go with a 12.5" wide tire on a 7" wheel, you have to worry about the tire crowning due to the rim being to harrow. A 12.5" wide tire is perfect on a 8" wheel, looks great on a 10" wheel due to the deeper lip of the rim but will stick out past the fender more and puts a lot more load on hub bearings. In my experience a 31x10.5 is ideal on a 2" BB lift.
Platinum 5.9 2.25" engine pipes 3" Magnaflow cat, 3" Hooker Aerochamber, 3" tail pipe, Ported kegger, 52MM Throttle Body, 24lb injectors, K&N drop in filter, Cast JEEP valve covers, MSD coil and wires, All new 6 piece clear light kit, 255/65/16 General Grabber HTS, 242 conversion, XJ u-joint front axle shafts