The environment Taylor grew up in which was a staunch anti-Liverpool area is enough to disqualify him from refereeing Liverpool games. Even more so games involving a Manchester and Liverpool based team in direct opposition.
The vast majority of people from Manchester dislike scousers and especially Liverpool FC. That in itself is grounds for Manchester officials not to referee games involving Liverpool. It is the PGMOL who have come up with the absurd rule that it becomes okay if you put down on your form that you support a lower League or none League team.
I'm not sure this is viable, as ever many on this thread, don;t recognise that their claims of bias are echoed by supporters from most PL clubs. I'm sure there are southern/london based fans who would assert that most Northerners grow up with a dislike for all things London/metropolitan and will remember terms like cockney mafia/del boy/artur daley being thrown around toward them. A bad decision or 2 might make them not want certain refs, also what about the supposed Yorkshire vs lancashire beef? I'm not sure how you can accept 1, without accepting the other. Social media and fan forum echo chambers can cause these sort of theories to spread like wild fire