You were right, looks like the plug has gone bad. I changed it to another CJ8 plug and it did start with starter fuild. it was still emitting black smoke. I removed the air filter and the smoke disappeared. So looks like the air filter is blocking inflow of air and the gas is not getting enough air to burn. I couldn't find a replacement air filter locally, so went ahead and cleaned it for now. I also looked at the engine replacement parts and found that it needs a RJ19LM plug, so changed the plug to First Fire FF-10 which seems to be the replacement plug for RJ19LM. It still needs a starter fluid when cold but it started on first pull once warmed up.
Like mentioned in this forum, the carb might need a clean up but I am afraid to touch it, so if it works with starter fluid, I will continue to use it.
Thanks again to everyone who pitched in.