Yep...they also call it 'backspacing'
Depends on what you want to do & how hashed your stock springs are.
New bushings, ditching your track bars & decent shocks will ride prety nice. Slap on some TJ fenders & trim a bit of sheet metal from the body openings & 31's fit pretty well for street/mild trail duty.
For tougher trails, you'll need to lift it. Or if your stock springs are abused, it's a good idea too.
If you can live w/ a little less turning radius, you can adjust your steering stops (bolts on the front of steering knuckle down low) so the tires don't rub in turns. I have 31's on stock TJ steelies & they don't rub now.