Taylor believes that the introduction of the video assistant referee (VAR) to the Premier League in 2019 has created unrealistic expectations about what referees should be getting right.
He told BBC Sport: "The amount of scrutiny and the amount of analysis and chat around Premier League football means everybody has a quest for perfection.
"In reality, perfection doesn't exist. We're expecting referees to get every decision right. It is really important that we actually start to talk about people being fearful of failure or mistakes.
"We have to accept that if we don't create the right environment for people to thrive, then people will be fearful, and that will have a negative impact on individuals and performance in the long term. Everybody's an expert."
Taylor believes that the notion that VAR would create a "utopia" in terms of refereeing decisions was badly mistaken.
He said: "It brought this expectation of perfection that it would solve absolutely everybody's problems and it would be a utopia.
"In reality, those people were way off the mark. One week, people will say: 'We don't want VAR to be too forensic.' The next week they'll be going: 'How has VAR not intervened in this?'
"People really need to decide what they want. You can't one week say, 'We don't want to get involved because it ruins the flow of the game', and the next week turn round and say, 'This is a disgrace that VAR's not intervened here.'
"We need to bring our heads out of the clouds sometimes to really think a little bit more logically about what the technology's there for."
Taylor - who has refereed in the Premier League for nearly 15 years - has been subjected to vile abuse at times and he blames the "win at all costs" climate in football for the toxic attitude towards officials.
He said: "If you're continually told you're not very good, whether that be by people in the media, by pundits, or even ex-officials, then people's mental health could potentially suffer.
"The footballing culture in general is, 'We need to win this game at all costs.'
"The lengths that people go to post-game with a lot of things now to spread false narratives, to spread malicious conspiracy theories... it creates a hugely negative environment for people to operate in."
