Following the advice of the Professional Footballers' Association (PFA), coach Hope Powell's England squad have decided not to sign the central contracts currently on the table.
The PFA, led by Taylor, are involved in trying to sort out a wrangle over how much time women players are able to devote to second jobs in order to supplement their incomes.
England are among the 12 finalists for this year's European Championship to be held in Sweden during July and, with the women's game enjoying more publicity than it has ever done, Taylor believes this should be reflected in their salaries.
The chief executive of the PFA said: "I am surprised the FA have not been more responsive to the girls' reasonable demands.
"In some ways, they have done a lot for the women's game, which now has increased TV coverage and obviously the facility at St George's Park is available for both male and female players.
"But they are offering to move these central contracts up from £16k - which has been the figure since 2009 - to £18k.
"Come on. That figure is embarrassing. Top Premier League players are earning more in a day."
At the 2012 Olympic Games in London, more 70 thousand spectators watched the Great Britain team beat Brazil at Wembley.
Taylor added: "Basically, these girls are having to commit themselves to England on a full-time basis.
"One player is training to be a lawyer and instead of two years to qualify, it is going to take four.
"When you consider the progress the women's game has made in recent years, and in these days of equality, it is not doing any of us any credit that negotiations have reached an impasse over sums like this."
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