The following is a rush transcript of the June 12, 2011 edition of "Fox News Sunday With Chris Wallace." This copy may not be in its final form and may be updated.

CHRIS WALLACE, ANCHOR: I'm Chris Wallace.

A top Republican presidential candidate calls out the White House over the slumping economy.

(BEGIN VIDEO CLIP)

FORMER GOV. TIM PAWLENTY, R-MINN.: The president is satisfied with a second rate American economy. I'm not.

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WALLACE: And as the recovery sputters and the debt crisis loom, issue number one on the campaign trail is getting the country back to work.

We'll talk with someone who has a plan for boosting the economy. Presidential hopeful and former Minnesota Governor Tim Pawlenty in the "Fox News Sunday" 2012: One on One interview.

Then, could Newt's nightmare be a dream come true for potential candidate Rick Perry? We'll our Sunday panel who in the GOP field is up, down, in or out.

All right now on "Fox News Sunday."

(MUSIC)

WALLACE: And hello again from Fox News in Washington. We start today with some late news.

The first photos have been released of Congresswoman Gabrielle Giffords since she was shot in the head in that January rampage in Tucson. Aides say she's making a good recovery but continues to have difficulties (INAUDIBLE) together words.

And the latest on New York Congressman Anthony Weiner. He announced he is seeking professional treatment to deal with his practice of sending online sexual images to women. Weiner said he'll request a leave of absence from the House. But top Democrats, including Nancy Pelosi, called for him to resign. More on this in a few minutes.

Now, to our first guest. With Newt Gingrich's campaign in disarray, there's suddenly an opening for former Minnesota Governor Tim Pawlenty to move up in the race for the Republican presidential nomination. We continue our series of 2012: One on One interviews with Tim Pawlenty, who's in New Hampshire today.

And, Governor, welcome back to "Fox News Sunday." Governor? Governor, can you hear us?

PAWLENTY: Yes.

WALLACE: Well, Governor, can you hear us?

PAWLENTY: Chris, I can hear you. I'm sorry. You were cut out there for a minute.

WALLACE: OK. Good. Well, that would have been -- that's good because we have 25 minutes budgeted to talk to you. So, that would have been a bit of a problem.

All right. Let's get going.

You unveiled a bold economic plan this week and let's run through your major proposals. Massive tax cuts -- take the top corporate rate from 35 percent all the way down to 15 percent, to individual tax rates 10 percent to the $100,000 couples make, everything above that, 25 percent. And big spending cuts from 24 percent of GDP down to 18 percent.

Governor, what would that do to the economy and what do you think it would do to our national debt?

PAWLENTY: Chris, it would unleash economic growth and job growth in this country. It would get back to the premise that we're going to grow the private economy, not the government economy. And it shows leadership and it puts specific proposals on the table.

I wish President Obama would do that, instead of leading from behind and refusing to address the real issues facing our economy, including spending reform. He basically waits for people like Congressman Ryan and others to lead and then he follows. That's not what a president should do. The president should bring forward the real challenges to this country, put out real solutions, that's what I would have done.

This plan, by the way, is one that gets back to the notion that we need to have a pro-growth economy focused on private sector job growth. And the number one path way forward for people's economic opportunity in this country is whether they have a job. This plan will unleash job growth in America big time.

WALLACE: All right. Let's drill down because it's a complex plan. As you say, it's a bold plan. It's also a controversial plan. Let's drill down first into the tax component of your proposal. The nonpartisan Tax Policy Center says if we follow your plan, that it would result in $11.6 trillion less revenue for the country over the next 10 years. Your own campaign says it would mean $2 trillion less in revenue.

Question -- doesn't your plan blow a hole in the national deficit?

PAWLENTY: Chris, it does not. First of all, those numbers, where they use the liberal think tank numbers that you cited or our numbers assume static scoring and first of all, over -- if you look at the tax cut part of it, there may be a small impact negatively on the deficit. That assumes no growth, assumes static scoring, which there will be growth because of this plan. But it forgets the other half of the plan. We are not proposing to cut taxes and raise spending -- as is happened in the past. We are proposing to cut taxes and dramatically cut spending as well. And when you do that over 10 years, this plan more than balances, has a positive impact on economic growth, has a positive impact on unleashing job growth in the country and the plan then well received by conservatives. In fact, yesterday, one of the leading economists in the country, John Taylor from Stanford, went through and said the growth targets are reasonable and achievable, and the plan holds together in that regard.

WALLACE: Well, let me just say that your campaign said that even with 5 percent growth, it still would result in $2 trillion less in revenue. But let me get this to this question of growth.

PAWLENTY: Chris, on that point, that's only half of the story. That's only if you use static scoring and it's only if you don't count back on spending cuts that we also make.

WALLACE: I know what static scoring. It assumes 5 percent growth, sir.

PAWLENTY: Yes, it does. But when we give you those numbers, it also -- that part of it doesn't take into affect the impact of the spending cuts. And when you do the spending cuts, it more than pays for that difference.

WALLACE: All right. Well, let's go through the two other parts of the equation. And that, first, is the question of economic growth and your 5 percent number. You say you can pay for the tax cuts because the economy is going to grow by 5 percent over the next decade. Let's take a look at what you said in your speech.

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PAWLENTY: And the 5 percent growth target isn't some a pie in the sky number. We've done it before and with the right policies, we can do it again.

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WALLACE: Governor, question: since the United States measured the GDP, basically growth of the economy in 1929, when have we had 10 consecutive years of 5 percent growth as you project in the plan?

PAWLENTY: Well, this is an aspiration. It's a big goal. And it's a stretch goal. And, by the way, I actually have a plan. Barack Obama doesn't have an economic plan. He just has a campaign plan. You can't find him on what he has to say on Social Security or Medicare or Medicaid. He has run out of ideas and the ideas he does have in growing the economy are bad. We tried it his way. It doesn't work.