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Is it 50% less tax generation? Maybe I read that wrong. Don't have the game running but I will double check.
Since your liege always gets a percentage of your levy, any boosts to your levy directly benefit the liege, so he's trading tax income for increased levy.
Levies are broken in CK3, they are worthless, their only purpose is to create more weight and generate attrition to your real troops, so you're trading half their income, which isn't a lot in the vassal system tbh, for...Nothing?
Once I have a good field army of 'real' troops, I use the levies to form the siege army while the field army either does other things, or sits close by NOT taking the attrition the siege army does, but is ready to intervene if the other side tries to lift the siege.
not trying to be argumentative. yours is a point I hadn't considered.
I guess as a liege you could enact it for your friend/alliance vassals temporarily to buff their levy contributions to make-or-break faction strength against vassals who hate you. Combined with other efforts you could maybe stop a faction from going into revolt.