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Is this a career track job for you? If it is, you should say, "Thank you, sir, and this will prove to be a great decision on your part.", and take the raise they offer. Then, in your next review after you've proven yourself, maybe you can comment that you've performed well and make the case for a raise to $XX.
Unless your employer is clueless, they recognize the valuable employees and will make financial decisions that will keep them to the extent possible. My advice is to never worry about money and just do your job in the best manner possible. If at some point you don't think you're making what you're worth, then shop around and see what the market will bring. I think it's rarely positive to try to negotiate with your employer.
(I should mention that this was my philosophy as an employee, and isn't just my jawing and positioning as an employer.)
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I'm putting random letters here as a celebration of free speech: xigrakgrah misorojeq rkemeseit.
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