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If you run a 12.50 tire on an 8" wide rim you will end up wearing out the center of your tread too early because it will bubble your tire too much.
This is a common thought, but it's just not true. Maybe on a bias-ply style tire, but not when it comes to a radial tire. The average 12.5 tire wears just as well on an 8 inch rim as it would a 10 inch rim.