The Professional Footballers' Association chief executive says the Leeds board are subjecting the United players to "moral blackmail".
Birch wanted the players to defer up to 35 per cent of their wages until the end of the season, but Taylor said some of the squad feared they would then never see their money.
He said: "That is a big worry for some of the players bearing in mind the scale of the club's debt.
"There has been a little bit of moral blackmail of the players. The board have brought things to a head by saying they don't want to sell any players and they have not been able to find any new investors, so that just leaves it down to the squad.
"It would be unfair for the Leeds supporters to think the players have discarded that option, they are very aware they may need to do it, but it should only be a measure of last resort.
"Leeds is not a hopeless case, if the players help them stay in the Premiership then they may have helped save the club."