Although just as far fetched the real math is this: *A reduction "by" is not the same as a reduction "of." A reduction "by" means you divide (by), ie if an employer pays $10,000, a 3000% reduction is $10,000/ 3000% = $333. A reduction "of" would be $10,000 multiplied by 3000% giving you the crazy numbers, and that wouldn't be a reduction! 3000% "of" $333 is $10,000, so it's a 3000% reduction from $10,000. It would have been simpler if he had said employers may be paying up to 3% "of" their current cost. But then what sounds more profound, 3 or 3000? After-all it is politics.