Farmerjerome,
Nobody can tell you what to do, and, in the end, you will probably end up going with what your heart says to do, whatever that is.
I'd just like to put in a word of caution. It sounds like you're in a place, personally, to make a break and start fresh somewhere else, and that could be a great thing. It could also, however, not be a good thing. Sometimes, the grass only looks greener from the other side. If you don't have a firm plan yet about where you'd like to go or what you'd like to do, I'd work on that first, so that when you do make a break, you can be confident things will work out, instead of just taking a leap of faith and hoping that they do.
I've been in a place/process that sounds similar to yours in many ways, and, while it's been good in some ways, and while I've grown and gained perspective and strength, and while I still have hope...the reality is that, that is still really all that I have right now, even 2 1/2 years since my life went through some major upheaval that also included the death of my father, although that has hardly been the only situation to arise.
Change is not always as timely, opportunistic, exciting or great as it is cracked up to be, especially when it is initially unplanned and is prompted by some thing or things that you wish -- to this day -- had never happened and that you still rail against because there is not a thing you can do about it.
My other thought is that you should consider where you want to be, position- and career-wise, before you decide that the raise -- even as meager/insulting as it is -- is not worth taking.
Would the position be worth taking even if, essentially, you did it just for the title/extra responsibility? Would it give you some skills/qualities, etc. that would help you get to a next step you might be planning or hoping for in the future?
Because, sometimes, even if you're a sales person who knows they could and should be a manager or editor, or whatever, and even if others think or know you could be a manager or editor, or whatever, you still might never be one if you don't actually take the intervening steps, get them on the resume, and spend some time, officially, in the jobs.
When it comes right down to it, even though you've told us on here, nobody really has to actually know what you make, and so, our opinions notwithstanding, that should not matter to anyone but you.
There can be other reasons for taking, or not taking, a job. I wouldn't argue either way about what you should do. This is all just something for you to consider.
