The pump needs the level over the pump to pickup suction, just the nature of that pump I guess, also there is a baffle in the tank, I guess to keep fines from getting to the pump as easily, also the coolant when running it wide open will pump the table full and the top of the stand.
The gist of the story is the tank needs to be full to work well.
Edit: I think you will also find that the pump leaves a bit to be desired too........many of the guys go to a sump pump of 1/4 to 1/2 hp variety.
The factory one works for the most part but it needs more pressure to blow the chips out of cavites better.
I also replaced the aluminum screen with a finer stainless steel one from ebay,as the coolant ate holes in the original one.