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What jobs are currently paying 85k?
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You can ask, but they are likely going to say "no" anyway.
It's probably time to find a new job that will pay you the market rate.
They've already told you there aren't going to be raises this year. The fact that someone with a high salary left and isn't going to be replaced isn't going to change their mind. The business views the two events as independent.
Trying to "get in the head" of the business is never a good strategy for the ask (even if it might motivate whether you ask). Just present your case for yourself on your terms. Your ultimately leverage is leaving, that's what they need to be thinking might happen-- not a threat you should make, but that's usually the necessary motivation.
This is similar to how internet and cell phone companies give discounts to new customers but screw existing customers because they already have you. During covid times I hired junior people who made more than me and I was their manager. I just had to keep it in perspective that I still made a lot of money and if I wanted more money I’d have to leave and be that new hire somewhere else who made more than peers. I stayed and it all worked out. Just really up to you how you feel about it
It’s fair to negotiate based on your own market value and performance. You don’t need to bring up the past hire to make your case. Focus on what you bring to the table right now and how replacing you would cost even more.
Subject Expert
Oh man.. you should try. But also find a new company. They’re shady
If you've worked for the company for at least 90 days, it's completely fine to ask for a raise. Make sure you have grown your skills and/or responsibilities in this role before you ask for a raise, though (you'll need to justify the value you're bringing to the company).
When you are ready to explain how you will bring more value with a raise, you'll want to make a meeting with your boss for this discussion. Don't try to ask for a raise during an annual review or other predetermined meeting. Ask your boss if you can meet to discuss what it would take for you to earn a raise as you grow in your role at [Company Name]. When you meet, don't mention the previous hire. Instead, talk about the ways in which you're excited to bring value to the company. Also, discuss specific numbers that show how you have saved/made the company money since you were hired. Tell your boss what you would like to make, and ask if it would be possible. If they say no, ask how you can grow in your role so that you could earn that salary in the future. Make sure you develop a plan so you know exactly what tasks will bring value and justify your receiving a raise later. I hope this helps! You've got this!