If percentage points can equal decimal points, then $1.25$ should equal $125$% when multiplying $1.25$ by any number.
Therefore $125$% of $0.75$ should equal $1$ if $0.75$ is also $75$% of $1$.
Am I missing something super obvious here or what?!
Please help. Thank you!


The mistake you're making is that first taking away some percentage (in this case $25\%$) and then adding the same percentage (again $25\%$) does not give you back the number that you started with.
For instance, you start with the number $1$. You take away $25\%$, i.e. you obtain $0.75\cdot 1 = 0.75$. Then you add $25\%$, i.e. you obtain $1.25\cdot0.75 = 0.94 \neq 1$.
The point is that adding $25\%$ here amounts to adding $25\%$ of the reduced value, which is, of course, less than $25\%$ of the original value.
So indeed $0.75\cdot 1.25 \neq 1$, which is correct because $125\%$ of $75\%$ of $1$ is not $1$.