Sen. Lugar calls for 'fair tax' in web video

Indiana Sen. Dick Lugar (R) said outlined his support for the so-called fair tax in a web video released to supporters on Thursday.

Lugar said he'd support tax reforms that abolish the IRS and replace the federal income tax with a national retail sales tax. There is currently legislation based on the fair tax plan pending in Congress, but observers say it has little chance of becoming law.

Lugar said now is the time to push the reform plan.

"With the election of a Republican House, and hopes in 2012 to gain Republican control of the Senate and the election of a Republican president, I believe we have another chance to fundamentally change the tax code," Lugar says in the video.

"This is extremely important because our current low growth era is accompanied by high deficits. We need to think creatively about achieving dynamic growth while simultaneously exercising fiscal restraint. A pro-growth tax code is the first and best step forward to doing so."

Lugar has supported the fair tax proposal before, but his taking up the issue again could be an entreaty to Republican primary voters. He faces a challenge from the right by state Treasurer Richard Mourdock (R).