Former Liverpool player Craig Johnston had earlier hit out at clubs and the PFA, with the Australian telling talkSPORT: "Players are getting too much money and the communities are getting nothing."
Johnston called on Taylor to "sort it out" and said club chairmen should "wake up to yourselves".
"Get together," Johnston said, "cut 50% of the wages and if you don't, you're all cowards because your clubs are going to go bankrupt.
"The club is the community. Mercenary footballers will come and go from abroad but the club remains there.
"So why doesn't it have a right to make money? It's because of the agents and the players and Gordon Taylor and his mates up there in the PFA, flying around in private jets."
Johnston said Taylor, chief executive of the PFA, should "put his hand in his pocket" to help Plymouth, who are in administration.
Taylor responded by insisting the criticism from Johnston was unfounded.
He said: "I didn't hear him complaining when we allowed his work permit to be one of those foreign players coming to England.
"We put three-quarters of our money back into community initiatives with the agreement of the players.
"Youth development, community programmes, our record is there on the line.
"There is one body trying to keep Plymouth in existence - we're the one body that has been making grants to players to hold the club together.
"I've spent the past 30 years trying to keep clubs in existence when people at the league wanted them to wither on the vine so I am perfectly happy to put my record up."
Taylor also defended the players' right to maximise the money they can earn given it is a short career.
"As a sportsman you are a special breed, you are entitled to capitalise on that ability and earn whatever you can," Taylor said.
"It's the world's major sport and with the television backing it gives the opportunity to create finance, but we have always wanted a lot of that money to go into capital projects for the future because I don't think it will be here for ever.
"It's not all about the millionaires at the top level and thankfully some of those are putting a lot back into the community and have a social responsibility.
"But it's a fact they are cashing in on the money that is coming into the game.
"In an ideal world it would be distributed better but it's not an ideal world."