I find "merit"/"performance" based raises for like 2 or 3% to be insulting.

You think I wasn't already doing my best, but what's going to motivate me to really give you my best is the promise of a 2% raise, if I successfully navigate the insane beurocracy to fill out my paperwork the right way to game the system and have my manager cooperate?

You don't just think I take no pride in my work and don't care about the project/mission itself, you also think I'm cheap/desperate.