CHICAGO -- Republican Tim Pawlenty says President Obama is satisfied with a second-rate American economy "produced by his third-rate policies."

The former Minnesota governor is in Obama's hometown of Chicago on Tuesday proposing an economic policy that would cut taxes on business by more than half and simplify the tax code to just three tiers.

Pawlenty also is proposing what he is calling "The Google Test." If Americans can find a service on the Internet from a private company, then the government probably shouldn't be providing it too.

Pawlenty's economic speech is his first as a declared presidential candidate. He says Obama has discouraged innovation and that regulations have weighed down an economic recovery.