An investigation by The Independent newspaper revealed that between £125m and £150m was paid to agents every year.
The figure includes payments from clubs to agents, as well as those made by the players themselves.
Former England manager Taylor said: "I have a reputation that I don't like agents. It's not really the case. I recognise the need for players to have representation.
"What I can't understand is the amount of cash football allows to go out of the game.
"My team has always been Scunthorpe, who I grew up supporting. When you see that Manchester United paid Louis Saha's agent £750,000 as part of the deal to sign him, you think 'Scunthorpe could live on that for three years'."