Bad no re-raise Pre Flop?

Button is 12/10/4.8 @ 195 hands. I think this hand is fairly standard. He's raising the top 10%. From the button, obviously he's looser than other positions. I'd imagine he shows up with AQ, AK in this spot as much as 99-AA. However, I think I could have gotten a lot more information had I raised PF. This is a simple laydown to stop further losses; even if I'm ahead (AQ) or even (AK), what's the point of continuing with the hand, when it's clear that it will only get more expensive from here.

Note: I was going for a limp / raise on the cutoff, who folded PF. I did not expect the Button to be raising.

Full Tilt No-Limit Hold'em, $0.10 BB (8 handed) - Full-Tilt Converter Tool from http://www.flopturnriver.com

Hero (UTG) ($16.89)
UTG+1 ($9.75)
MP1 ($14.68)
MP2 ($11.28)
CO ($8.36)
Button ($19.61)
SB ($10.09)
BB ($19.91)

Preflop: Hero is UTG with Ah, Kc
Hero calls $0.10, 4 folds, Button bets $0.50, 2 folds, Hero calls $0.40

Flop: ($1.15) 3c, 7d, 8c (2 players)
Hero checks, Button bets $0.70, Hero folds

Total pot: $1.15 | Rake: $0.07

Results:
Button didn't show
Outcome: Button won $1.08