ha ha yeah I see a lot of companies doing that (ours included).
Boss: "Yeah the raise is low because you know, it's tough economic times and the company has to be careful and next year's revenue is expected to be flat."
Employee: "But we made more revenue last year than all the years our group has been active..."
Boss: "Yeah but we're foreseeing tough times ahead so..."
Employee: "But that what's you said last year and the year before and look what happened..."
Boss: "Yeah well, look, I don't control the raises. Corporate does. So we have no choice in the matter."
They always defer to "It's Corporate's decision" once all their prior arguments have run out. At least I got a decent bonus.